According to Reuters, Elon Musk’s company aims to reduce dependence on Chinese suppliers due to tariffs. The lithium iron phosphate (LFP) batteries that LG Energy Solution will supply to Tesla will be produced at the South Korean company’s plant in Michigan, USA.
LGES has already confirmed that it signed a contract worth $4.3 billion to supply LFP batteries worldwide over the next three years, without disclosing the name of the customer. In the company’s statement, which lists Tesla and General Motors among its key clients, it was not mentioned whether the LFP batteries would be used in vehicles or energy storage systems.
“We cannot disclose the customer due to confidentiality obligations,” LGES told Reuters. Tesla has also not officially confirmed the deal with LG Energy Solution yet.
It is worth adding that Tesla is currently importing LFP batteries from China.
