Overview

• In a regulatory filing, LGES confirmed a 5.9 trillion-won supply deal for lithium iron phosphate cells running from August 1, 2027 to July 31, 2030.
• The contract value equals 23.2 percent of last year’s 25.6 trillion-won sales and remains subject to revision after client consultations.
• Although unnamed, the buyer is widely believed to be Tesla as it seeks LFP supplies outside China to sidestep U.S. import tariffs.
• LGES has retooled part of its Michigan plant for LFP production and runs additional battery cell factories in Ohio and Tennessee.
• LFP batteries offer enhanced safety and lower production costs compared with nickel-based cells but have lower energy density and shorter driving range.