Tesla has reportedly signed a $4.3 billion deal to manufacture energy system storage batteries in the U.S, in partial response to the financial burden of the tariffs imposed by the Trump administration.
According to Teslarati, the deal will benefit both Tesla and LG Energy Solutions (LGES), the battery manufacturer included in the deal. While LGES is a global company headquartered in South Korea, it has a U.S. factory in Michigan, which will be working with Tesla.
Tesla CFO Vaibhav Taneja revealed that sourcing the battery cells from China was contributing to supply-chain issues with the company. "[The company is working on] securing additional supply chain from non-China-based suppliers," Taneja said in response, as quoted by Teslarati.
Not only will the China tariffs be avoided, but the Tesla energy system storage batteries will be manufactured in the U.S., cutting prices for the company — and hopefully for consumers as well.
Though Tesla has faced rocky sales numbers across 2025, continued advancements by the company, such as the launch of the robotaxi program and Full Self-Driving system, have kept the electric vehicle giant in the zeitgeist.
Tesla EVs may not be for everyone, with some having reservations about the company in response to CEO Elon Musk's previous involvement in U.S. politics. Others may be looking for super-affordable EVs. However, if Tesla isn't right for you, owning an EV can look different than a Model Y or Cybertruck, as more brands are launching electric models.
Switching to an EV is a great way to reduce your contribution to pollution. Electric vehicles do not burn dirty fuels to run and, with fewer moving parts, require less maintenance than gas-powered cars as well.
While there is an environmental impact associated with lithium mining, as is needed for the battery cells manufactured by LGES, the amount is far less than the impact caused by mining for dirty fuels, and lithium can be recycled.
A great way to ensure you have reliable energy for charging your EV is the installation of solar panels. Solar panels dramatically increase the cost savings associated with EV ownership, because fueling with solar energy is cheaper than using public charging stations or relying on the grid — plus, solar is fully renewable energy.
If you aren't sure where to start with solar, EnergySage makes it easy to compare quotes from vetted local installers and save up to $10,000 on solar installations.
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