Tesla Signs $4.3 Billion LFP Battery Deal With LGES, $16.5 Billion Chip Deal With Samsung - CleanTechnica

Tesla has entered into a $4.3 billion agreement with LG Energy Solution (LGES) for lithium iron phosphate (LFP) batteries to be produced at LGES’s U.S. factories in Michigan, Ohio, and Tennessee. Although LGES has not officially named Tesla as the buyer due to confidentiality, South Korean sources confirm Tesla’s involvement. This deal marks a shift from Tesla’s previous reliance on China-based CATL amid U.S.-China trade tensions and political pressures. Deliveries are set to begin in August 2027 and continue through July 2030, potentially extending up to seven years with increased supply volumes. The batteries are expected to support Tesla’s grid-scale and residential energy storage products, aligning with LGES’s focus on affordable LFP batteries optimized for energy storage rather than high-cost, high-energy-density chemistries used in some EVs. In a separate but related development, Samsung Electronics has signed a $16.5 billion chip manufacturing contract with Tesla, effective July