South Korea's LG Energy Solution has signed a $4.3 billion deal to supply Tesla with energy storage system batteries, said a person familiar with the matter, as the U.S. company looks to reduce reliance on Chinese imports due to tariffs.

Tesla has signed a $4.3B battery supply deal with LG Energy Solution, shifting energy storage production to the U.S. and reducing reliance on China.

According to Reuters, Tesla has signed a $4.3 billion battery supply deal with LG Energy Solution to reduce China reliance and cushion US tariff impact on its energy storage business.

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

South Korean battery maker LG Energy Solution (LGES) has signed a $4.3 billion contract to supply Tesla with lithium iron phosphate (LFP) batteries for energy storage systems, a person familiar with the matter said on Wednesday.

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.

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.

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 Inc (NASDAQ: TSLA) and South Korea’s LG Energy Solution Ltd have inked a $4.3 billion deal for lithium iron phosphate batteries designated for energy storage, Reuters reported Wednesday. According to a source familiar with the matter cited by Reuters,