Tesla and LG Energy Solutions to Launch $4.3 Billion Battery Cell Plant in Lansing

16 hours ago

A $4.3 billion investment is being made to establish a battery cell manufacturing plant in Lansing, Michigan, which will supply Tesla with prismatic battery cells.

The facility, operated by LG Energy Solution, is expected to start production in 2027 as part of a partnership between the South Korea-based battery company and Tesla. According to the U.S. Department of the Interior, these battery cells "will power Tesla's Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain."

The project was initially announced in 2022 as Ultium Cells, a joint venture between General Motors and LG Energy Solution. However, GM sold its stake in 2024, leaving LG and Tesla as primary partners.

Bob Trezise, president and CEO of the Lansing Economic Area Partnership, stated, "There are over 2,000 construction workers earning good wages building that plant over the last two and a half years, and we expect to have 1,500 to 1,700 permanent jobs."

Trezise emphasized the broader economic impact of such manufacturing plants, noting, "Major job creators like this have a ripple effect on the local economy. The ancillary benefits last for years and decades—landscaping companies, pest control, garbage pickup, and many other locally owned businesses serve a plant like this."

The building for the new manufacturing plant is already constructed. Trezise expressed hope that this project will contribute to establishing a green energy hub in Michigan.

He added, "The more energy you can capture, save, and store from solar panels and wind turbines, the less likely you are to rely on big diesel engines. We see this as a very positive development overall."