Reports say Tesla is strengthening its North American domestic energy storage supply chain, with LG New Energy's U.S. factory to supply LFP energy storage batteries.

IT Home, February 25 — According to Korean media The Elec, LG Energy Solution will produce lithium iron phosphate (LFP) batteries for energy storage systems at its Lansing, Michigan factory for Tesla.

Reports say LG Energy Solution initially established a joint venture with General Motors in Lansing, Michigan. By May 2025, LG Energy Solution acquired GM’s shares, gaining full ownership of the factory. The facility has an annual capacity of about 50 GWh and is one of LG Energy Solution’s largest battery manufacturing plants in North America.

It is currently transforming part of the Lansing plant’s production lines into LFP energy storage battery lines. Equipment for the new lines has been ordered, and mass production is expected to start in the second half of next year.

IT Home notes that as early as July last year, LG Energy Solution disclosed a battery supply agreement worth 5.94 trillion Korean won, with a contract period from August 2027 to July 2030. Although the customer’s name was not publicly disclosed at the time, industry sources widely suggest Tesla as the main purchaser.

Currently, Tesla’s Megapack energy storage systems mainly use square batteries from CATL (300750). The news that Tesla will source square LFP cells from LG Energy Solution’s US factory is seen as an important move to strengthen Tesla’s North American local energy storage supply chain.