Tesla and LG Energy announced plans to jointly build a $4.3 billion battery manufacturing facility in Michigan, with production scheduled to begin next year according to a Department of the Interior statement. The plant will have an annual capacity of 50 GWh and will produce American-made battery cells.
The facility will specifically manufacture cells for Tesla's Megapack 3 energy storage systems, which are produced at Tesla's Houston facility. This creates what officials describe as a robust domestic battery supply chain for grid-scale energy storage applications.
The Michigan plant represents one of the largest battery manufacturing investments in the United States, highlighting the growing demand for energy storage infrastructure. The facility is expected to create significant manufacturing jobs in the region, though specific employment numbers were not disclosed in the announcement.
The investment comes as the U.S. seeks to reduce dependence on foreign battery supply chains, particularly from China, which currently dominates global battery production. The domestic production capability supports both Tesla's energy storage business and broader American energy security objectives.
Grid-scale battery storage is becoming increasingly critical as renewable energy deployment accelerates, requiring large-capacity systems to store intermittent solar and wind power for release during peak demand periods.