LG Energy Solution Retools U.S. Plant to Supply Tesla with LFP Energy Storage Batteries

LG Energy Solution has recently launched a retrofit project at its Lansing, Michigan plant in the U.S., transforming the facility into a dedicated energy storage system (ESS) production site specializing in lithium iron phosphate (LFP) prismatic batteries. The company will also begin supplying these batteries to Tesla for the first time. Production line conversion has already commenced, key equipment orders have been placed, and commercial operations are expected to start in the second half of 2025. This move stems from a four-year battery supply agreement signed in July 2023, valued at approximately KRW 5.94 trillion, which industry insiders widely believe is with Tesla. The new batteries feature a "top-tab" design, consistent with the prismatic cells co-developed by LG and General Motors. Currently, Tesla’s Megapack products primarily rely on similar LFP cells supplied by CATL. As of the end of 2023, LG Energy Solution had secured over 140 GWh of ESS orders and plans to increase its global ESS production capacity to at least 60 GWh by the end of 2024, with 50 GWh located in North America. This strategic shift significantly strengthens LG Energy Solution’s competitiveness in the North American energy storage market.