Tesla has signed a $4.3 billion deal with LG Energy Solution to supply batteries for energy storage systems (ESS), CNBC reported on March 17. LG Energy Solution will produce the batteries at its Lansing, Michigan plant, where GM pulled out.

LG Energy Solution will produce LFP (lithium iron phosphate) batteries at the Lansing plant. LFP supports safety and efficiency without cobalt and nickel. An LG Energy Solution spokesperson said, "We will build a dedicated production line at the Lansing plant to fulfill this contract."

GM decided last year to scale back its electric vehicle business and withdrew from its joint venture with LG, leaving Tesla to fill the gap. GM plans to focus on its existing internal combustion engine business. Tesla, meanwhile, is diversifying its revenue model by expanding its energy business beyond electric vehicles.

Tesla's energy segment revenue rose 27 percent last year to $12.8 billion. The core of Tesla's energy business is large-scale power storage systems using Megapack and Megablock. Megapack stores energy such as solar and wind power and supplies it during periods of high electricity demand.

Elon Musk (일론 머스크), Tesla's CEO, said, "The energy segment will maintain very high growth in the future as well."

Tesla's energy business is evolving beyond electric vehicles toward providing sustainable energy solutions.