The US government has officially confirmed that Tesla is the customer behind LG Energy Solution’s massive $4.3 billion lithium iron phosphate (LFP) battery supply contract — ending months of speculation since LG first disclosed the deal last July.
The three-year agreement will see LG produce LFP prismatic cells at its Lansing, Michigan factory starting in 2027, feeding directly into Tesla’s next-generation Megapack 3 energy storage systems assembled at the Houston Megafactory.
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