Overview

• The 5.9 trillion won deal represents roughly 23.2 percent of LGES’s 2024 revenue and is the company’s largest energy storage order to date.
• Deliveries of U.S.-made LFP cells will run from August 1, 2027, to July 31, 2030, with provisions for potential extensions following further consultations.
• The batteries will be produced at LGES’s Michigan plant, which began mass-producing LFP cells in May and remains the only large-scale LFP supplier in North America.
• Steep U.S. import tariffs on Chinese battery cells and Inflation Reduction Act tax credits have motivated Tesla to seek non-Chinese sources for its stationary storage business.
• Analysts project that North America’s energy storage market will expand from about 55 GWh in 2023 to over 180 GWh by 2035, underlining the deal’s role in scaling grid-scale storage.