Overview

• Under the three-year contract running from August 2027 through July 2030, LG Energy Solution will supply lithium-iron-phosphate batteries for Tesla’s energy storage systems, with options to extend up to seven additional years.
• The deal locks in LFP cells produced at LGES’s Michigan plant, reducing Tesla’s reliance on Chinese battery imports and shielding it from potential tariff hikes.
• LGES cannot disclose Tesla’s identity as the customer or detail whether the batteries will power vehicles or stationary storage due to confidentiality obligations.
• Tesla CFO Vaibhav Taneja has said the company is working to build more non-Chinese supply chains, though diversification will take time to fully implement.
• The current 90-day US-China tariff truce expires on August 12, and trade delegations meeting in Stockholm are discussing a possible 90-day extension.