The South Korean company, LG Energy Solution (LGES), has signed a $4.3 billion agreement to supply Tesla with batteries for energy storage systems.
According to “Reuters” on Wednesday, Elon Musk’s company aims to reduce dependence on Chinese imports due to tariffs. The lithium iron phosphate (LFP) batteries that LG Energy Solution will supply to Tesla will be manufactured at the South Korean company’s factory in Michigan, USA.
LGES has already confirmed that it has signed a $4.3 billion contract to supply LFP batteries globally over three years, without identifying the customer. The company’s announcement, whose main clients include Tesla and General Motors, did not reveal whether the LFP batteries would be used in vehicles or energy storage systems.
“We cannot disclose the identity of the customer due to confidentiality obligations”, LGES told “Reuters”. For its part, Tesla has not yet confirmed the agreement with LG Energy Solution.
It is worth noting that Tesla currently imports LFP batteries from China; however, the tariffs imposed by Donald Trump are making it increasingly difficult for American companies to import batteries.
