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is expanding ties with South Korea’s LG Energy Solution, striking a deal to buy $4.3 billion worth of battery cells for energy storage systems that will be made in Lansing, Michigan.
The plant was formerly developed for a joint venture between LG and General Motors
before the automaker decided to retreat from that initiative in late-2024, selling its stake to LG as part of a pullback in the automaker’s electric vehicle investments.
While Tesla still makes most of its revenue from EVs, the company is investing in its more rapidly growing energy business, as data centers drive up electricity demand. Tesla’s Megapacks can store power produced using intermittent sources like solar or wind, or during off-peak hours, then make it available for use when demand is high.
