Home > Information > News

Exclusive Supply to Tesla! LG Michigan Factory to Produce ESS Square Batteries

Kuai Technology 2026-02-25 16:18:48

On February 24, according to foreign media reports,LG Energy Solution has begun converting its wholly owned Lansing, Michigan factory in the United States into a dedicated production site for prismatic batteries for energy storage systems (ESS). This facility will be the company’s first to manufacture ESS prismatic batteries, and Tesla has been confirmed as the end customer.

LG Energy Solution has begun converting the production lines at its Lansing plant to manufacture LFP prismatic batteries for Tesla and has started placing purchase orders for key equipment. The specific commercial operation timeline has not been confirmed, but industry consensus expects it to commence in the second half of next year.

LG Energy Solution signed an LFP battery supply contract worth approximately 5.94 trillion KRW in July last year.The industry generally believes the customer is Tesla, and the contract period is from 2027 to 2030.

A representative from LG Energy Solution said, "To ensure the competitiveness of our North American ESS business, the company is preparing various products, including cylindrical batteries." After acquiring the third factory of Ultium Cells, the company is currently setting up the facility and converting the production lines.

LG Energy Solution previously produced pouch-type batteries for ESS at its Holland plant in Michigan and the NextStar Energy plant in Canada. This time, the Lansing plant's transition to prismatic batteries will focus on overhauling the assembly and post-processing processes. Among these, the stacking equipment in the assembly process is crucial, and the partner companies may include Shinjin Mtek, a collaborator of LG Electronics Production Technology Center. The post-processing equipment will be supplied by Apro, which has provided equipment to the Ultium Cells plant.

LG Energy Solution's prismatic batteries for ESS feature a "top-tab" design with both positive and negative tabs located at the top of the cell, identical to the prismatic cell format co-developed with General Motors. The company currently produces LFP pouch cells, but demand for LFP prismatic cells is substantial in the large-scale grid ESS market. Tesla's utility-scale Megapack has consistently used LFP prismatic cells, currently supplied by China's CATL.

Tesla directly produces home-use Powerwalls and industrial-use Megapacks, among other ESS products, while the battery cells are sourced from suppliers such as LG Energy Solution and Samsung SDI.Tesla has Megapack manufacturing facilities in California and Shanghai, China, with a combined annual capacity of 80 GWh, and plans to build a new 50 GWh production facility in Houston.

As of the end of last year, LG Energy Solution had secured cumulative ESS orders exceeding 140 GWh and plans to increase its ESS production capacity to at least 60 GWh by the end of this year, with 50 GWh of that capacity located in North America.

【Copyright and Disclaimer】The above information is collected and organized by PlastMatch. The copyright belongs to the original author. This article is reprinted for the purpose of providing more information, and it does not imply that PlastMatch endorses the views expressed in the article or guarantees its accuracy. If there are any errors in the source attribution or if your legitimate rights have been infringed, please contact us, and we will promptly correct or remove the content. If other media, websites, or individuals use the aforementioned content, they must clearly indicate the original source and origin of the work and assume legal responsibility on their own.

Exclusive Supply to Tesla! LG Michigan Factory to Produce ESS Square Batteries

Most Popular