en.Wedoany.com Reported - A battery manufacturing plant in Lansing, Michigan, originally built by General Motors to support its electric vehicles, has now shifted to a new partner and will begin supplying battery products to Tesla.

LG Energy Solution recently announced that the Lansing manufacturing plant will be retooled to produce battery cells for Tesla's energy storage business. The cells produced will ultimately be used for utility-scale power storage and to power artificial intelligence data centers.

The manufacturing plant was initially a joint venture project co-funded by LG Energy Solution and General Motors, aimed at providing power batteries for electric vehicles. However, as General Motors later scaled back its electrification plans, the automaker sold its stake in the joint venture to LG last year.

Currently, the plant's production plan is to supply supporting batteries for Tesla's Megapack 3 energy storage system, which is manufactured in Houston and primarily used for large-scale energy storage by power companies.

Following the repeal of federal tax incentives, demand for electric vehicles in the United States has significantly decreased, causing several automakers to suffer tens of billions of dollars in losses. Faced with this situation, automakers and battery suppliers are rapidly pivoting, shifting battery production capacity originally planned for electric vehicles to the faster-growing grid-scale energy storage sector.

Tesla's energy generation and storage business achieved 27% growth last year, covering utility batteries and solar panels, while its core automotive business revenue declined by about ten percent during the same period.

This LG plant in Michigan will specialize in producing lithium iron phosphate cells, commonly known in the industry as LFP. This chemistry is widely used in the energy storage battery sector.

This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com