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Tesla and LG Energy Solution have reached a $4.3 billion agreement to build a lithium iron phosphate battery cell manufacturing facility in Lansing, Michigan, slated to begin production in 2027. The facility will supply batteries for Tesla's Megapack 3 energy storage systems.

This partnership is part of efforts to strengthen the domestic battery supply chain and reduce reliance on Chinese imports. LG Energy Solution's strategy includes expanding its energy storage system market presence, with expectations for significant demand growth in the coming years.