Tesla-LG Energy Solution to Build Lansing ESS Plant in Michigan

The U.S. government has officially identified Tesla as the customer for LG Energy Solution’s battery-supply contract worth roughly 6 trillion won, signed last July. The agreement includes the construction of a dedicated LG Energy Solution facility in Lansing, Michigan, to manufacture energy storage system ESS batteries, with production slated to begin next year.

In a fact sheet released after the Indo-Pacific Energy Security Ministers’ Forum and Business Forum (IPEM) held in Tokyo, Washington highlighted a 56 billion-dollar package for energy and infrastructure investment and cooperation, calling the battery industry a central pillar of modern power infrastructure.

The fact sheet also states that the Tesla–LG Energy Solution partnership has expanded to build the Lansing facility, a 4.3 billion-dollar project to manufacture LFP prismatic battery cells. It notes that production at the facility is expected to start next year and that the cells will be used in Tesla’s Megapack 3 energy storage systems produced in Houston, Texas.

The disclosure confirms the previously NDA-protected customer and production details for LG Energy Solution’s ESS-LFP order, which had been publicly discussed by outlets but not officially named until now. Tesla’s involvement has been publicly acknowledged in this government briefing, marking a rare public confirmation of a high-profile contract.

Industry analysts describe the development as a milestone for LG Energy Solution, representing its first large-scale contract for LFP (lithium iron phosphate) battery cells for energy storage applications. The deal underscores a shift in the company’s strategy beyond automotive batteries toward North American energy storage markets.

For U.S. readers, the arrangement matters beyond South Korea and the automotive sector because it reinforces domestic battery production and supply chains at a time when Washington emphasizes energy security and local sourcing of critical components. A Michigan facility producing cells for U.S.-built energy storage systems could bolster resilience against global supply disturbances and support U.S. jobs and investment in the growing ESS market.

Context for non-Korean readers: Lansing is the capital of Michigan, and LG Energy Solution operates a 100% owned plant there. Holland, Michigan, is another LG building location. Tesla’s Megapack 3 is a large energy storage system used to store electricity for grid stability. The IPEM forum, held in Tokyo, is a platform for Indo-Pacific–focused energy security cooperation among participating governments and industry leaders.