New Tesla Deal Marks Major Win For Lansing/Delta Township Battery Plant
LG Energy Solution’s new Lansing/Delta plant has landed a $4.3B contact with Tesla to build more product in the existing new plant
Lansing, Mich. (Mar. 18, 2026) — Lansing Economic Area Partnership (LEAP) is pleased to announce that LG Energy Solution (LGES) has officially welcomed, into its new Lansing/Delta plant, a multi-billion-dollar contract to produce electric storage cells for Tesla.
LG Energy Solution provided the following statement:
“We have signed a $4.3B supply agreement with Tesla for ESS LFP prismatic cells, and we will establish dedicated production lines at our Lansing facility to deliver on this agreement.”
LG Energy Solution’s new 2.8 million square foot facility, where the battery cells will be produced between 2027-2030, was the result of multi-pronged effort by local and state entities, over the last five years. Economic development is the gift that keeps on giving- to the community.
“This Tesla contract with LG Energy Solution is another important step toward the Lansing region becoming the EV/Green Energy Capital of North America,” said Bob Trezise, President and CEO of LEAP. “Despite the recent federal trends away from green energy and electric cars, LEAP continues to believe the Lansing region can become the hub for such innovative energy solutions. The LEAP projects and strategies continue to successfully diversify our local and state economy, creating more and better jobs and tax base for quality services in our local communities.”
The deal will sustain the momentum LG Energy Solution has generated in the region, as they create over 1,500 good jobs in the next few years and significant increases to the tax base long term. The production deal also supports the continued drive to remove dependence upon Chinese manufacturing in the battery and green energy sector, moving it back to the USA.
Background
Five years ago, the Lansing region and State of Michigan found itself in competition with other states for this plant. Originally conceived by Ultium as an electric battery joint venture of General Motors and LGES, it would become the largest single-industry construction project in the state’s history.
The Lansing region was able to secure the project through a combination of local incentives from the Lansing Board of Water and Light (BWL), Mayor Schor’s office and the City of Lansing, and the elected officials at Delta Township, who moved quickly to approve a renewed revenue sharing agreement for the proposed site.
LEAP helped facilitate this collaboration.
A cutting-edge approach to workforce development agreements and programs was then developed between the Capital Area Michigan Works! (CAMW!), Lansing Community College (LCC), the State of Michigan and LEAP.
Thanks in large part to Governor Whitmer and the bi-partisan leadership of the state legislature, a new economic tool, the Strategic Outreach and Attraction Reserve (SOAR), was introduced and passed, further allowing Michigan to compete against other states vying for the plant who had substantial grant funds on offer.
Additionally, LEAP successfully designed and lobbied for a new state program from Michigan Economic Development Corporation (MEDC) called the Strategic Site Readiness Program (SSRP). This program granted LEAP $66.1 million for critical wastewater and electricity infrastructure improvements through Lansing BWL and Delta Township.
LEAP congratulates all our partners: Governor Whitmer and the bi-partisan leadership of the legislature, the MEDC and its team of leadership from LEO, Lansing Mayor Schor, the Lansing City Council and their team at the Lansing Economic Development Corporation, Delta Township Supervisor Fonda Brewer and the Board of Trustees, Lansing BWL General Manager Dick Peffley and team, CAMW! CEO Carrie Rosingana and her team, LCC President Steve Robinson and his team, Lansing Regional Chamber of Commerce President & CEO Tim Daman and his team, and of course, the world-class team here at LEAP.
About LEAP
The Lansing Economic Area Partnership (LEAP) is a coalition of area leaders partnering to build a stronger community for all — working every day to grow, retain and attract business to the Lansing, Michigan, region.
Category: Press Releases, Talent and Workforce