Details
🔑 Deal Locked In: LG Energy Solution will supply Tesla with battery cells worth $4.3 billion from August 2027 through July 2030, with options to extend and expand volumes.🏭 US Production: The LFP cells come from LG’s new Michigan plant—one of the first large-scale facilities for this chemistry in the US.📈 Energy-Storage Boom: Cells will go into Powerpack and Megapack systems, whose demand is soaring thanks to AI data centers.💸 Tariff Relief: Up to 40 % duties on Chinese batteries will hit Tesla less hard.🚀 Korean Lead: Rivals Samsung SDI and SK On are only now planning US LFP lines; LG has already ramped up production.
Why It Matters
- Supply Security: A non-Chinese source stabilizes Tesla’s battery supply chain.
- Local Value Creation: The multi-billion-dollar deal bolsters the US battery ecosystem in the Midwest.
- Korea as Tech Champion: The agreement underscores South Korea’s weight in strategic high-tech supply chains.
🇰🇷 Why South Korea?
South Korea invests about 5 % of its GDP in R&D—the highest share among OECD nations. A dense network of state support, top-tier engineering programs, and global giants like Samsung, LG, and SK accelerates the transfer from lab to fab. High-tech exports consistently exceed 50 % of total exports, driven by semiconductors and batteries.
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