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South Korean Battery Maker Secures $4.3B Tesla Deal for U.S. Energy Storage
30 Jul
Summary
- $4.3 billion contract for LG Energy Solution to supply Tesla with LFP batteries
- Batteries to be produced at LGES's U.S. factory
- Contract spans 3 years from 2027 to 2030, with option to extend
South Korean battery manufacturer LG Energy Solution (LGES) has announced a major $4.3 billion contract to supply Tesla with lithium iron phosphate (LFP) batteries for the electric vehicle maker's energy storage systems. The deal, which spans from August 2027 to July 2030, will see LGES produce the batteries at its factory in the United States.
The contract includes an option to extend the agreement by up to seven years and to increase the supply volumes based on discussions between the two companies. LGES, a key U.S. producer of LFP batteries, began production at its Michigan factory in May of this year.
The agreement comes as countries and companies globally scramble to secure supply chain agreements, particularly in the battery and semiconductor industries. Earlier this week, Samsung Electronics and Tesla also announced a $16.5 billion chip supply deal.
