Key Points
- LG Energy Solution has signed a $4.3 billion contract to supply batteries to an unnamed major corporation.
- Reuters has reported that the customer is Tesla. The contract is set to run until the end of July 2030.
- This follows news from earlier this week that Tesla also signed a $16.5 billion chip deal with Samsung.
- The deal’s value is larger than LG’s total revenue from the last quarter.
South Korean battery giant LG Energy Solution has signed a massive $4.3 billion contract to supply batteries to a major corporation. While LG did not name its partner, Reuters is reporting that the customer is Tesla.
The deal, which was announced on Wednesday, is set to run through the end of July 2030. According to LG’s regulatory filing, the customer’s name will not be disclosed until the contract ends to protect “business confidentiality.” The company did warn investors that the details of the deal could change.
If Tesla is indeed the partner, this would be the second major deal the electric vehicle maker has struck with a South Korean company this week. On Monday, CEO Elon Musk confirmed that Tesla was behind a $16.5 billion chip contract with Samsung.
The $4.3 billion battery contract is a huge deal for LG, with a total value that is even larger than the company’s entire revenue from the second quarter. The filing did not specify whether the batteries will be used for electric vehicles or energy storage systems. LG is a major battery supplier for both Tesla and General Motors.
The company has been ramping up its manufacturing presence in the U.S., opening a new energy storage battery hub in Michigan and building a new plant in Arizona.
