Report: Tesla signs $4.3 billion battery deal with LGES
Elon Musk’s company has been looking to reduce reliance on Chinese imports due to US tariffs. The lithium iron phosphate (LFP) batteries will be supplied from LGES’s factory in Michigan.
South Korea’s LG Energy Solution (LGES) has signed a USD 4.3 billion deal to supply Tesla with energy storage system batteries, Reuters reports.
Elon Musk’s company has been looking to reduce reliance on Chinese imports due to US tariffs. The lithium iron phosphate (LFP) batteries will be supplied from LGES’s factory in Michigan, sources told Reuters.
The South Korean company had earlier announced the USD 4.3 billion contract to supply the batteries over three years but not identified the customer.
LGES has been expanding its manufacturing in the US. Its first ESS battery manufacturing hub in Michigan went online in the second quarter of 2025. It is also building a facility in Arizona to produce LFP batteries.
This week, Tesla also announced a USD 16.5 billion agreement to buy semiconductors from South Korean giant Samsung’s factory in Texas.
