DELTA TOWNSHIP, Mich. — A new $4.3 billion supply agreement with Tesla will shape the production lines at the LG Energy Solution battery plant in Delta Township.
- LG Energy Solution will produce electric storage cells for Tesla products.
- The $4.3 billion deal brings stability to the plant's operations and future growth.
- Delta Township leaders are preparing for the more development by looking into workforce housing.
The battery plant was originally a joint venture between GM and LG Energy Solution called Ultium Cells. In December 2024, it was announced GM would sell its stake, leading to LG overtaking operations.
WATCH: New $4.3 billion Tesla deal shapes production at Delta Township LG battery plant
Bob Trezise, the president and CEO of the Lansing Economic Area Partnership, said the new $4.3 billion supply agreement provides more stability, and shows power in diversifying production with LGES.
"It helps to continue to ramp up that plant, assures, double downs the assuredness that we’ll add 1,500 minimum jobs in the plant into next year and it really diversifies the products that are made in the plant and helps diversify the economy and we’ll take the name too," Trezise said.
The deal means LG Energy Solution will produce electric storage cells for Tesla products. While the Tesla name is often associated with cars, this product is more geared toward infrastructure.
"Very cutting edge, very advanced, and I think those products could range from maybe charging stations to cells that hold electricity in better ways in things like data centers," Trezise said.
Delta Township Supervisor Fonda Brewer said this is the kind of deal the community has been preparing for.
"We’ve talked about it over the years, now we’re walking the walk," Brewer said.
I learned the opportunity to host a deal like this brings new conversations to the area.
"We are looking at workforce housing and we will be having more conversations on that in the coming months," Brewer said.
Trezise said the plant has already hired about 600 people as operations get underway. The battery cells for Tesla should start being produced in 2027.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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