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LG Energy Solution Registers 5.9 Trillion-Won LFP Battery Deal Tied to Tesla

Reflecting Tesla’s strategy to shift battery sourcing under U.S. tariffs, the three-year deal offers optional seven-year extensions on locally produced LFP cells.

Overview

  • LGES’s regulatory filing covers battery deliveries from August 2027 through July 2030 for an unnamed client widely reported to be Tesla.
  • The 5.9 trillion-won contract equals about 23.2 percent of LGES’s 2024 sales, marking its largest energy storage system order.
  • Production will take place at LGES’s Michigan plant, bolstering U.S. domestic output of cost-efficient LFP batteries.
  • The agreement includes provisions to extend or adjust the contract term by up to seven years based on client consultations.
  • The deal supports Tesla’s move to secure non-Chinese LFP supplies and navigate rising tariffs on battery imports.