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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL – LG Energy Solution (LGES) has signed a ₩6 trillion (approx. USD 4.4 billion) contract to supply lithium iron phosphate (LFP) batteries in North America over the next three years — the largest single deal in the company’s history.
LGES disclosed the agreement on July 30, without naming the customer due to confidentiality provisions. However, industry sources strongly believe the buyer is Tesla, pointing to several clues:
LGES currently mass-produces LFP batteries for energy storage systems (ESS) in the U.S., not for EVs.
Tesla stated in its Q1 earnings call that it was seeking non-China LFP suppliers in the U.S. market.
Analysts interpret the deal as a major step in solidifying a “battery alliance” between LG Group Chairman Koo Kwang-mo and Tesla CEO Elon Musk.
Tesla sells a wide range of ESS products — from the residential Powerwall to the commercial Powerpack and utility-scale Megapack. The automaker is also ramping up construction of large AI data centers across North America, requiring massive ESS capacity — a move likely tied to this LFP supply agreement.
This landmark deal underscores LGES’s growing influence in the global ESS and battery supply chain, and signals deeper collaboration with top-tier U.S. tech and energy players.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
