Tesla has reportedly struck a new $4.3 billion deal with LG Energy Solution (LGES), a major South Korean battery manufacturer. The contract is for the supply of lithium iron phosphate (LFP) batteries, specifically for stationary energy storage systems and not for electric vehicles.

LG Energy Solution, a key battery supplier for GM, has reportedly signed a $4.3 billion battery deal to supply lithium iron phosphate batteries to Tesla.

According to The Korea Economic Daily, the contract between Tesla and LGES is worth $4.3 billion. LGES will begin supplying Tesla with cells next August through until at least the end of July 2030, with provisions to extend the contract if necessary.

The company said that details of the agreement such as the deal amount were subject to change and the contract period could be extended by up to seven years.

Tesla is rumored to be behind a large $4 billion lithium-iron phosphate (LFP) battery cell order with Korea’s LG

LG Energy Solution (LGES), a South Korean battery manufacturer, has signed a $4.3 billion agreement with Tesla to become the primary supplier of batteries for the electric vehicle giant’s energy storage systems.

LG Energy Solution secured a $4.3 billion battery contract, targeting the North American energy storage market amid rising demand.