The Financial Post reports in its Wednesday edition that LG Energy Solution will produce $4.3-billion (U.S.) worth of batteries in Michigan for Tesla's energy storage systems business. A Bloomberg dispatch to the Post says production at the lithium-iron-phosphate prismatic battery cell plant is scheduled to begin next year. "American-made cells will power Tesla's Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain," LG Energy said. The company's shares rose 4 per cent in Seoul on Tuesday. The agreement underscores the South Korean battery maker's aggressive expansion into the fast-growing energy storage system market in response to surging demand primarily from artificial-intelligence-driven data centres, a slowing electric-vehicle transition in the U.S. and intensifying competition from China. Tesla, which currently relies heavily on Chinese-made LFP cells, has also been stepping up efforts to diversify its supply chain to mitigate tariffs pressure and reduce production costs. The company reported that the tariff impact on its energy storage business amounted to roughly $200-million (U.S.) in the third quarter of 2025 alone, and it wanted to localize battery making.