Tesla has entered into a $US4.3 billion ($6.6 billion) agreement with LG Energy Solution to source lithium iron phosphate (LFP) batteries. This marks Tesla’s second partnership with a South Korean manufacturer this month. LG Energy Solution is a South Korean company that manufactures batteries. Tesla is an electric vehicle and clean energy company.
According to a source familiar with the matter, the batteries will be manufactured at LG Energy Solution’s US plants. However, they will not be used in Tesla’s electric vehicles. The intended application for these batteries is energy storage systems, as stated by the source, who requested anonymity because the information is not yet public.
This agreement follows Tesla’s recent $US16.5 billion deal with Samsung Electronics for the production of artificial intelligence semiconductors. For LG Energy Solution, the deal aligns with its strategy to expand its energy storage business in the US. The company is also planning to increase LFP battery production at its joint venture plant with General Motors in Tennessee.
