LG Energy Signs $4.3 Billion Agreement With Tesla

The facility, originally built as a joint venture with General Motors to supply EV batteries, has pivoted amid slower-than-expected EV demand and rising energy storage needs. The Lansing plant will establish dedicated production lines for Tesla battery cells, with manufacturing expected to begin in 2027.

The company has hired 408 of the 1,360 workers required under a $120 million state subsidy agreement. Manufacturing employees at the Delta Township site are projected to earn about $55,000 per year.

LG Energy Solution has also shifted production at other North American facilities to lithium-iron-phosphate battery cells for homes, businesses, and utilities. Tesla’s decision to source batteries domestically is part of an effort to reduce dependence on imported cells and avoid tariffs.

Michigan officials highlighted the agreement as a major step for the state’s energy and advanced manufacturing sectors. Danielle Emerson, a spokesperson for the Michigan Economic Development Corp., called the deal “proof that Michigan is, and will continue to be, the premier state in the nation for mobility and advanced energy solutions.”

The Lansing plant joins other LG facilities producing grid-scale batteries, including locations in Holland, Michigan, and Ontario, as the company continues to expand its energy storage footprint in North America.

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