SEOUL — The U.S. government has confirmed that Tesla is the customer behind LG Energy Solution’s previously undisclosed battery supply agreement announced in July, according to industry sources.
Details of the deal were included in a statement released by the U.S. Department of the Interior following the Indo-Pacific Energy Security Ministerial and Business Forum held in Tokyo over the weekend.
According to the department, Tesla and LG Energy Solution are expanding their partnership through a supply agreement tied to the construction of a $4.3 billion lithium iron phosphate (LFP) prismatic battery cell manufacturing facility in Lansing, Michigan. Production at the plant is expected to begin in 2027.
The U.S.-made battery cells will be used to power Tesla’s Megapack 3 energy storage systems, which are produced in Houston, as part of efforts to strengthen the domestic battery supply chain.
LG Energy Solution had earlier disclosed in July that it signed a long-term LFP battery supply agreement with an overseas client but did not reveal the buyer at the time, citing confidentiality. The contract runs for three years, from Aug. 1, 2027, through July 31, 2030.
The South Korean battery maker said in a regulatory filing that the deal is valued at 5.9 trillion won, or approximately $4.26 billion, representing about 23.2 percent of its annual sales of 25.6 trillion won reported last year.
The company noted that the contract’s value and duration could be adjusted based on future discussions with the client.
LG Energy Solution operates three battery cell plants in the United States, located in Ohio, Tennessee, and Michigan. Its Michigan facility is currently producing LFP batteries primarily for energy storage systems. (Source: IANS)
