Electric vehicle maker Tesla (TSLA) has announced plans to build a $4.3 billion U.S. battery cell manufacturing plant within the U.S.
The company said that the new plant should mean more growth at lower costs for its battery storage business.
South Korea’s LG Energy Solution is partnering with Tesla on the new battery plant that is to be based in Lansing, Michigan. Production is slated to begin in 2027.
Tesla plans to make batteries for its Megapack 3 energy storage systems at the new Michigan plant, helping to build a domestic battery supply chain in the U.S.
Megapacks are large blocks of batteries sold to utilities that can be paired with renewable energy to store power when the wind isn’t blowing or the sun isn’t shining.
The Michigan-made battery cells will be shipped to Houston, where Tesla will use them in their stationary storage business, according to the company.
Tesla’s utility business generated 2025 sales of $12.7 billion U.S. or 13% of the company’s total revenue. Tesla deployed 46.7 gigawatts of battery storage in 2025, up 50% year-over-year.
TSLA stock has declined 10% so far this year to trade at $395.56 U.S. per share.
