The U.S. Department of the Interior has announced that Tesla Motors and LG Energy Solution are expanding their collaboration through a supply agreement to construct a $4.3 billion lithium iron phosphate battery manufacturing facility in Lansing, Michigan. Production is expected to commence in 2027.

Batteries manufactured at the U.S. plant will power Tesla's Megapack 3 energy storage systems produced in Houston, establishing a robust battery supply chain.

This initiative is part of a broader $56 billion agreement reached by the Trump administration during the Indo-Pacific Energy Security Summit.