FinancingAnnouncedMarch 17, 2026

LFP Prismatic Battery Cell Manufacturing — Lansing, Michigan (former Ultium Cells 3, 50 GWh capacity) — supplying Tesla Megapack 3 at Houston Megafactory

Tesla confirmed by US government as buyer in LG Energy Solution's $4.3B LFP supply agreement. LG will repurpose the 50 GWh ex-Ultium Cells 3 plant (former LG/GM JV, GM sold stake May 2025) in Lansing, MI to produce LFP prismatic cells for Tesla's next-generation Megapack 3 energy storage systems. Three-year supply contract from 2027 to mid-2030 with extension options up to 7 years. Announced at Indo-Pacific Energy Security Summit in Japan as part of $56B US private sector commitments. Production starts 2027.

$4.30B

Deal Value

50,000MWh

Storage

Battery Storage

Technology

MI

Location

Deal Details

Deal Type
Manufacturing Investment
Seller / Sponsor
LG Energy Solution
Buyer / Financier
Tesla
Offtaker
Tesla (Megapack 3)
Deal Value
$4.3B
Stage
Development
ISO/RTO
MISO
Source
CNBC

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