South Korea’s LG Energy Solution signs $4.3 billion battery supply deal
The LG Electronics logo is seen on the opening day of the Integrated System European Exhibition in Barcelona on January 31, 2023.
Pau Barrena | AFP | Getty Images
South Korean -based LG Energy Solution announced on Wednesday that it has signed a $ 4.3 billion contract to supply batteries to a large company without naming the customer.
The date of entry into force of the contract – the order was taken – it started on Tuesday and will end at the end of July 2030. During this period, the other party will not be explained to protect the privacy of the company. Applying to the Korean Exchange showed Wednesday. Reuters He reported that Tesla was the other party.
At the beginning of this week, Tesla CEO Elon Musk confirmed that the home manufacturer was behind a $ 16.5 billion chip agreement that had not been announced before with Samsung electronics of South Korea.
LG Energy said that the details of the contract, such as the amount of agreement in the file, are subject to change and that the contract period could be extended up to seven years.
“Investors were advised to carefully evaluate the possibility of changes or termination of the contract when making investment decisions.” Stocks were traded by 0.26% lower.
The filing did not clarify whether lithium iron phosphate batteries would be used in vehicles or energy storage systems. American electric vehicle manufacturers among its main battery customers Tesla And General motors.
Company is expanding battery production In the United States and Arizona, it is building a plant to produce lithium iron phosphate batteries.
LG Energy Solution and Tesla did not immediately respond to CNBC’s comments requests.
