Overview
- L&F disclosed that Tesla reduced a multiyear cathode contract to roughly $7,000 from about $2.9 billion, effectively ending the agreement.
- Industry reporting indicates the high‑nickel materials were intended for Tesla’s 4680 cells, which are used largely in the Cybertruck rather than across the lineup.
- Cybertruck sales fell 38% year over year in the first nine months of 2025 to 16,907 units, and the program’s leader, Siddhant Awasthi, has departed.
- Manufacturing hurdles with the 4680’s dry‑electrode process and cell design have constrained output, while Tesla continues relying on 2170 and LFP cells for most models.
- L&F says its products perform to spec and it continues supplying Korean cellmakers, as broader North American EV pullbacks have also led to reduced orders at suppliers such as LG Energy Solution and Freudenberg.