Tesla has signed a $4.3 billion contract with LG Energy Solution to supply the battery cells it needs for its rapidly expanding energy storage business in the US. These batteries will be manufactured at a factory in Lansing, Michigan, and will primarily produce lithium iron phosphate cells. Those cells will be used in Tesla's well-known Megapack systems, which store electricity and redistribute it during peak demand periods. This deal is a major boost to the US goal of keeping battery supply operations domestic and reducing reliance on imports, particularly from China. As demand for large-scale energy storage continues to grow rapidly, Tesla's energy division has grown remarkably — reportedly generating revenues of up to $12.8 billion. Ref: Fossbytes