LG opens $4.3 billion battery plant to supply Tesla Megapack 3

LG Energy Solution has officially launched production at its new facility in Lansing, Michigan. The plant will manufacture lithium iron phosphate (LFP) cells for energy storage systems, including the next-generation Tesla Megapack 3.

The contract between LG Energy Solution and Tesla is valued at approximately $4.3 billion. Full-scale deliveries for the Megapack 3 are expected to begin in 2027. At full capacity, the facility will produce over 35 GWh of battery cells annually. LG has also announced plans to establish more than 50 GWh of energy storage system production capacity in North America by the end of 2026.

Local production of LFP batteries in the United States is particularly important for Tesla. It will help reduce the company's reliance on Asian suppliers and strengthen the domestic supply chain for its rapidly growing energy storage business. The Lansing plant is positioned as a key element of the American battery supply chain, supporting Tesla's expansion in the stationary storage market.