Tesla Inc (NASDAQ:TSLA) and South Korea’s LG Energy Solution Ltd have inked a $4.3 billion deal for lithium iron phosphate batteries designated for energy storage, Reuters reported Wednesday.
According to a source familiar with the matter cited by Reuters, the batteries will be produced at LG’s manufacturing facility in the United States.
Earlier the same day, LG announced a $4.3 billion contract to provide battery and storage technologies but did not disclose the client.
LG Energy ranks among the world’s leading battery manufacturers and supplies lithium-ion batteries to Tesla for its Model 3 and Model Y electric vehicles, which are assembled in China and Europe.
It remains unclear whether the batteries under this new agreement will be allocated for Tesla’s vehicles or solely for energy storage applications.
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