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Tesla signed a $4.3B battery cell deal with LG Energy Solution for its Michigan Megapack facility, formerly a GM-LG joint venture. Tesla's energy segment — up 27% to $12.8B last year — is growing fast as data center demand drives electricity storage needs, even as auto revenue fell 10%.

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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Tesla agreed to purchase $4.3 billion in battery cells from LG Energy Solution for
00:08energy storage systems produced at a Lansing, Michigan facility, according to CNBC.
00:13The plant was previously part of a joint venture with General Motors before GM exited in late
00:182024 and sold its stake to LG. Tesla still generates most of its revenue from EVs,
00:24but is investing in its faster-growing energy business as data-centered demand
00:29increases electricity needs. Its Megapacks store energy from solar, wind, or off-peak production
00:35and release it when demand is high. Energy revenue rose 27% to $12.8 billion last year
00:41and accounted for 13% of total revenue, while auto revenue declined 10%.
00:46LG will establish dedicated production lines at the Lansing site to fulfill the agreement.
00:52For all things money, visit Benzinga.com.
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