Tesla, LG Energy to Build $4.3 Billion Plant in Michigan
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Article content(Bloomberg) — Tesla Inc. and LG Energy Solution Ltd. will build a $4.3 billion battery plant in Lansing, Michigan to supply the carmaker’s energy storage systems business. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentConfirmation of the deal, reported by Bloomberg News in July, was included in a US Department of the Interior statement to highlight energy security cooperation between the US and Indo-Pacific nations. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentProduction at the lithium-iron-phosphate prismatic battery cell plant is scheduled to begin next year, the statement said. Article contentArticle content“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain,” it said. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentLG Energy shares rose as much as 2.9% in Seoul trading on Tuesday. Article contentThe agreement underscores the South Korean battery maker’s aggressive expansion into the fast growing energy storage system market in response to surging demand primarily from AI-driven data centers, a slowing electric-vehicle transition in the US and intensifying competition from China. Article contentTesla, which currently relies heavily on Chinese-made LFP cells, has also been stepping up efforts to diversify its supply chain to mitigate tariffs pressure and reduce production costs. The company reported that the tariff impact on its energy storage business amounted to roughly $200 million in the third quarter of 2025 alone, and it was seeking to localize LFP battery manufacturing. Article contentLG, alongside domestic rivals like Samsung SDI Co. and SK On, has been repurposing several EV battery production lines, aiming to raise its ESS cell output to more than 60 Gwh this year. Article contentBloombergNEF forecasts demand from US data centers will more than double from 2024 to 78 Gwh by 2035, accounting for nearly 9% of the country’s entire electricity demand and outpacing growth in EVs and hydrogen. Samsung SDI has said the US ESS market is projected to reach 130 Gwh in 2030 from around 80 GWh now.Article content(Adds LG Energy shares in fifth paragraph.)Article contentTrending Subscriber only.
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The United States is losing its grip on Canada's steel market Subscriber only Commodities Posthaste: Even Americans are getting fed up with Donald Trump's tariffs News Bank of Canada expected to hold interest rates as nation faces trade uncertainty, global conflict Economy Saint John's port is booming as Ontario shippers seek to dodge U.S. tariffs Economy Xanadu teams up with Telus to build Canadian quantum computing infrastructure Innovation