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LGES, Tesla partner on $4.3 billion lithium battery cell plant in Michigan

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17/03/2026
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LGES, Tesla partner on $4.3 billion lithium battery cell plant in Michigan
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Tesla and LG Energy Solution are partnering together on a lithium-iron phosphate (LFP) prismatic battery cell manufacturing facility in Lansing, Michigan. The cells, which should start coming off the lines in 2027, will power Tesla’s Megapack 3 battery energy storage systems that will be assembled in Houston, Texas.

The Lansing site was previously a joint-venture between LGES and General Motors for EV battery production. GM sold its stake to LGES in early 2025, and the nearly-completed factory shifted to LGES ownership. The Dept. of the Interior confirmed yesterday that the new Tesla-LGES partnership will spend $4.3 billion on the Lansing site.

Once the prismatic manufacturing facility comes online, it is assumed that LGES will be the first global battery manufacturer to offer all three form factors: pouch, cylindrical, prismatic. Prismatic battery cells feature a flat, rectangular shape with a rigid enclosure, which allows for space-efficient packaging within battery modules and packs, the company says.

Solar Power World visited the LGES pouch-based LFP manufacturing plant in Holland, Michigan, last year.

The Tesla facility outside Houston is within the same industrial park that hosts the Sirius PV and Waaree solar panel assembly sites.

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