Tesla buyer in LG Energy's July battery deal

The US government has confirmed that global electric vehicle (EV) giant Tesla was the customer in a battery supply deal secured by LG Energy Solution in July, industry sources said.

The US Department of the Interior posted the results of the Indo-Pacific Energy Security Ministerial and Business Forum held in Tokyo over the weekend, which included the Tesla-LG Energy Solution deal, reports Yonhap news agency.

"Tesla and LG Energy Solution are expanding their partnership with a supply agreement to build a $4.3 billion LFP prismatic battery cell manufacturing facility in Lansing, Michigan, launching production in 2027," the US department said on its website.

"American-made cells will power Tesla's Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain," it added.

In July, LG Energy Solution said it signed a lithium iron phosphate (LFP) battery supply deal with an overseas client, without disclosing the buyer.

The South Korean battery maker said it will supply LFP batteries to the unnamed client for three years, from Aug. 1, 2027, to July 31, 2030.

Industry watchers had speculated Tesla was the counterpart, but LG Energy Solution refrained from providing details, citing business confidentiality.