LG Energy Solution has launched production of LFP cells for Tesla in the U.S.
South Korea’s LG Energy Solution has begun production of soft-pack lithium iron phosphate (LFP) cells for Tesla’s energy storage systems at its plant in Lansing, Michigan. Production is taking place as part of a $4.3 billion supply agreement the companies signed last year, according to InsideEVs.
The facility, valued at over $2 billion, will also supply batteries for energy storage systems to DTE Energy. The plant covers 2.8 million square feet and is located on a 226-acre site.
The facility was originally planned as a joint Ultium Cells project between LG Energy Solution and General Motors to produce batteries for electric vehicles. After federal tax credits for electric vehicles expired and sales growth proved slower than expected, General Motors sold its stake in the plant last year. Since then, LG Energy Solution has been its sole owner.
For more breaking news, follow the UA.News Telegram channel.
The company is also not abandoning the automotive sector. According to LG Energy Solution, the plant produces nickel-manganese-cobalt (NMC) cells for the upcoming electric Toyota Highlander. Robert Lee, head of LG Energy Solution in North America, noted that shifting production to LFP cells for energy storage systems required new equipment and a review of manufacturing processes, particularly due to the thicker LFP coating.
The finished LFP cells from Lansing are shipped to another LG Energy Solution plant in Holland, Michigan, where they are assembled into complete energy storage systems. The company stated that the cells themselves are manufactured entirely in the U.S., though the raw materials for them come from Indonesia and China, among other sources.
LG Energy Solution is also collaborating with General Motors on lithium-manganese (LMR) batteries, in which they plan to reduce the nickel and cobalt content. GM previously announced its intention to use such batteries in large pickup trucks and SUVs starting in 2028. In addition, LG Energy Solution is preparing a pilot project involving sodium-ion batteries for energy storage systems and is monitoring developments in solid-state batteries.
