Tesla to buy storage battery cells from LGES in $4.3 billion deal

Tesla has signed a $4.3 billion deal with LG Energy Solution (LGES) to purchase storage battery cells. The cells will be manufactured in LGES's facility in Michigan and will be of the lithium iron phosphate (LFP) type. The agreement is a significant move for Tesla, as it diversifies its battery supply chain and reduces its reliance on other suppliers. LFP batteries are known for their safety, long lifespan, and lower cost compared to other battery chemistries. The deal is expected to support Tesla's ongoing efforts to expand its energy storage business, which includes Powerwall and Megapack products. The availability of locally produced LFP cells will also help Tesla meet its production targets and reduce supply chain bottlenecks. The partnership between Tesla and LGES showcases the growing demand for energy storage solutions and the importance of secure and reliable battery supply chains in the transition to a more sustainable energy future.