WASHINGTON, March 16 (Reuters) - The U.S. government on

Monday said electric vehicle maker Tesla and South

Korea's LG Energy Solution had signed a supply

agreement to build a $4.3 billion lithium iron phosphate (LFP)

prismatic battery cell manufacturing facility in Lansing,

Michigan, with an expected productionlaunch in 2027.

"American-made cells will power Tesla's Megapack 3 energy

storage systems produced in Houston, creating a robust domestic

battery supply chain," the U.S. Department of the Interior said

in a statement on Monday.

The agreement was part of a broader statement on deals

highlighted by President Donald Trump's administration from the

Indo-Pacific Energy Security Summit.

A source told Reuters in July that LG Energy Solution had

signed a $4.3 billion deal to supply Tesla with energy storage

system batteries as the U.S. company looked to reduce its

reliance on Chinese imports due to tariffs.

At the time, the South Korean company said it had signed a

$4.3 billion contract to supply LFP batteries over three years

globally, without identifying the customer or saying if they

would be used in vehicles or energy-storage systems.

LG Energy Solution is one of the few producers of LFP

batteries in the U.S. The LFP battery chemistry has long been

dominated by Chinese rivals that have little presence in the

U.S. market.