Tesla to Use Former GM Site for LFP battery Production in Michigan

A battery plant in Michigan originally tied to General Motors’ Ultium expansion is being repurposed to support Tesla’s growing energy storage business. The facility, located in Lansing, will now produce lithium-iron phosphate (LFP) battery cells as part of a $4.3 billion investment involving Tesla and LG Energy Solution.

The development was first reported by Reuters, highlighting a notable shift in how EV and battery investments are being redeployed across the industry.

Former GM-linked site pivots to Tesla battery production

The Lansing facility had initially been planned as a third Ultium Cells plant under General Motors’ EV expansion strategy. However, as GM scaled back some of its EV spending plans, the project’s direction changed.

Tesla and LG Energy Solution will now use the site to manufacture LFP battery cells, with production expected to begin in 2027, according to GM Authority.

The U.S. Department of the Interior said the plant will support Tesla’s energy storage business, with American-made cells powering Megapack 3 systems produced in Houston. The move is aimed at strengthening a domestic battery supply chain for large-scale energy storage applications.

Tesla expands domestic battery supply for energy storage

Tesla’s partnership with LG Energy Solution reflects a broader push to localize battery production in the United States.

LFP batteries, commonly used in energy storage and entry-level EVs, have traditionally been dominated by Chinese manufacturers. By establishing domestic production capacity, Tesla can reduce exposure to tariffs, supply chain risks, and geopolitical uncertainties.

For LG Energy Solution, the project strengthens its position as one of the few companies capable of producing LFP cells at scale in the U.S., particularly for stationary storage applications.

The Lansing facility’s transition from a GM-aligned project to a Tesla-focused one highlights the fluid nature of the EV supply chain, where investments and partnerships are increasingly shaped by shifting market dynamics.

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