Overview
- L&F said the 2023 agreement to supply high‑nickel cathode materials for January 2024 through December 2025 was initially valued at about $2.9 billion.
- The company disclosed the revaluation to $7,386 without explaining the change, and neither L&F nor Tesla responded to requests for comment.
- Industry analysts point to slowing EV demand and production‑yield problems in Tesla’s 4680 program that cut near‑term material needs.
- Tesla’s 4680 cells are currently used in the Cybertruck, and Elon Musk has acknowledged that scaling the dry‑electrode process is challenging.
- The disclosure arrives as South Korean suppliers face wider setbacks, including LG Energy Solution’s large revenue losses from terminated deals and SK On’s decision to end its Ford battery JV after U.S. subsidy changes in September.