--- title: "Tesla expands US LFP battery supply with LG Energy Solution deal: report" type: "News" locale: "en" url: "https://longbridge.com/en/news/276883766.md" description: "Tesla has partnered with LG Energy Solution (LGES) to manufacture lithium iron phosphate (LFP) batteries at LGES's Lansing, Michigan facility. This plant, with a capacity of 50 GWh per year, will convert part of its operations to produce LFP batteries for Tesla's energy storage systems, with mass production expected to start in the second half of next year. This move aims to strengthen Tesla's North American supply chain for energy storage, as it transitions from using CATL's batteries. LGES previously acquired the Lansing site from General Motors in May 2025." datetime: "2026-02-25T11:42:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276883766.md) - [en](https://longbridge.com/en/news/276883766.md) - [zh-HK](https://longbridge.com/zh-HK/news/276883766.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276883766.md) | [繁體中文](https://longbridge.com/zh-HK/news/276883766.md) # Tesla expands US LFP battery supply with LG Energy Solution deal: report LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility. The report was initially published by _TheElec_, citing industry sources. LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America. LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year. Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer. Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business. For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits. Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale. The post Tesla expands US LFP battery supply with LG Energy Solution deal: report appeared first on TESLARATI. ### Related Stocks - [Tesla, Inc. (TSLA.US)](https://longbridge.com/en/quote/TSLA.US.md) - [GraniteShares 1.25x Long Tsla Daily ETF (TSL.US)](https://longbridge.com/en/quote/TSL.US.md) - [GraniteShares 2x Long TSLA Daily ETF (TSLR.US)](https://longbridge.com/en/quote/TSLR.US.md) - [Leverage Shares 2X Long TSLA Daily ETF (TSLG.US)](https://longbridge.com/en/quote/TSLG.US.md) - [T-REX 2X Long Tesla Daily Target ETF (TSLT.US)](https://longbridge.com/en/quote/TSLT.US.md) - [Simplify Volt TSLA Revolution ETF (TESL.US)](https://longbridge.com/en/quote/TESL.US.md) - [Direxion Daily TSLA Bull 2X Shares (TSLL.US)](https://longbridge.com/en/quote/TSLL.US.md) - [Tradr 2X Short TSLA Daily ETF (TSLQ.US)](https://longbridge.com/en/quote/TSLQ.US.md) - [GraniteShares 2x Short TSLA Daily ETF (TSDD.US)](https://longbridge.com/en/quote/TSDD.US.md) - [XI2CSOPTSLA-U (09366.HK)](https://longbridge.com/en/quote/09366.HK.md) - [XL2CSOPTSLA (07766.HK)](https://longbridge.com/en/quote/07766.HK.md) - [XI2CSOPTSLA (07366.HK)](https://longbridge.com/en/quote/07366.HK.md) ## Related News & Research - [Tesla Expands EV and Energy Reach in Q1](https://longbridge.com/en/news/281560227.md) - [Tesla first-quarter deliveries are coming. What it means for the stock.](https://longbridge.com/en/news/281359346.md) - [Tesla's First Quarter EV Sales: Analysts Project Modest Gains](https://longbridge.com/en/news/281225239.md) - [Tesla’s sales recover slightly, but the trend lines are all bad](https://longbridge.com/en/news/281541012.md) - [Tesla, Inc. $TSLA Shares Sold by BTC Capital Management Inc.](https://longbridge.com/en/news/281321406.md)