LG Energy Solution to Repurpose Michigan Battery Plant for Energy Storage, Supplying Tesla Megapack 3 from 2027

On August 18, LG Energy Solution held a commissioning event at its Delta Township, Michigan facility, announcing that the production line originally intended for electric vehicle (EV) batteries for General Motors (GM) would now also handle energy storage system (ESS) battery orders. The plant was initially launched in 2022 as a joint venture between LG Energy Solution and GM, with plans to build a facility spanning approximately 2.8 million square feet and create 1,700 manufacturing jobs. Following GM’s exit, LG Energy Solution acquired full ownership of the plant and integrated it into its North American ESS manufacturing network. LG Energy Solution stated that the facility will begin producing prismatic lithium iron phosphate (LFP) cells for Tesla’s Megapack 3 starting in 2027. The company aims to achieve over 50 GWh of ESS battery production capacity in North America by the end of 2026, primarily by repurposing existing facilities rather than constructing new plants to control capital expenditures. This strategic shift involves reallocating approximately $2.6 billion worth of assets.