The US government has confirmed that Tesla is the customer for LG Energy Solution's $4.3 billion lithium iron phosphate (LFP) battery supply contract. The three-year agreement will see LG produce LFP prismatic cells at its Lansing, Michigan factory starting in 2027, feeding directly into Tesla’s Megapack 3 energy storage systems assembled at the Houston Megafactory. The confirmation came during the Trump administration’�s Indo-Pacific Energy Security Summit. This deal aligns with Tesla's energy storage division, which has been under threat from tariffs on Chinese battery imports. The deal positions LG Energy Solutions as the only major battery supplier currently scaling US-based LFP production, ahead of Samsung SDI and SK On.