Tesla (NASDAQ:TSLA) and LG Energy Solution are set to invest $4.3 billion to construct a battery manufacturing facility in Michigan, part of a broader effort to reinforce domestic energy supply chains, according to a U.S. government announcement.
The new plant will be built in Lansing and is expected to begin producing lithium iron phosphate (LFP) prismatic battery cells in 2027. These batteries will supply Tesla’s Megapack 3 energy storage systems, which are manufactured at the company’s facility in Houston.
The project deepens Tesla’s existing partnership with LG Energy Solution and is intended to expand battery production capacity within the United States while reducing dependence on international supply chains.
The investment was revealed alongside a series of energy and infrastructure agreements announced during an Indo-Pacific energy summit supported by the administration of Donald Trump.
Officials said the broader initiative aims to strengthen access to critical minerals and clean energy technologies while promoting job creation and industrial development across the United States.