Tesla signs $4.3 billion battery supply deal with LG Energy
Tesla has finalized a $4.3 billion agreement with South Korea’s LG Energy Solution to supply lithium iron phosphate (LFP) batteries. This marks Tesla’s second major South Korean partnership this month, indicating a strategic expansion of its supply chain. LFP batteries are cheaper and safer compared to nickel-based alternatives and are increasingly used in Tesla’s lower-end models. The move strengthens Tesla’s positioning amid rising competition and demand in the global EV market.
A major supply chain move that underscores Tesla’s focus on cost-effective battery technologies for future growth.
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