Washington: The U.S. government has confirmed that global electric vehicle giant Tesla Inc. was the customer in a battery supply deal secured by LG Energy Solution Ltd. in July, industry sources said Tuesday. The confirmation came as part of the results posted by the U.S. Department of the Interior following the Indo-Pacific Energy Security Ministerial and Business Forum held in Tokyo over the weekend.

According to Yonhap News Agency, the forum's findings revealed a significant development in the Tesla-LG Energy Solution partnership. The two companies have entered into a supply agreement to construct a US$4.3 billion LFP prismatic battery cell manufacturing facility in Lansing, Michigan. Production is slated to begin in 2027, with the American-made cells intended to power Tesla's Megapack 3 energy storage systems produced in Houston, thereby establishing a domestic battery supply chain.

LG Energy Solution had previously announced in July that it signed a lithium iron phosphate (LFP) battery supply deal with an overseas client, without disclosing the buyer. The South Korean battery maker disclosed that it will supply LFP batteries to the unnamed client for a period of three years, starting from August 1, 2027, to July 31, 2030.

Industry watchers had speculated that Tesla was the counterpart in the deal, but LG Energy Solution refrained from providing details, citing business confidentiality. The recent confirmation by the U.S. government puts to rest months of speculation regarding the identity of the unnamed client involved in the significant battery supply agreement.