Tesla has entered a US$4.3 billion supply agreement with LG Energy Solution for lithium iron phosphate (LFP) batteries to be used in its U.S. energy storage systems—excluding vehicles. Production is set to begin at LG’s U.S. facilities in August 2027.
This is Tesla’s second major partnership with a South Korean firm this month, following a US$16.5 billion semiconductor deal with Samsung Electronics. LG had previously disclosed a 5.9 trillion won overseas LFP contract in regulatory filings without naming the customer. That deal includes options to extend the contract by up to seven years and increase supply volumes through further discussions.
The agreement aligns with LG Energy’s strategy to grow its energy storage footprint in the U.S., amid intensifying competition with Chinese battery makers. LG began LFP battery production at its Michigan plant in May and plans to expand output further through its joint venture facility with General Motors in Tennessee.
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Info via Bloomberg report, gated.
This article was written by Eamonn Sheridan at investinglive.com.