Tesla is rumored to be behind a big $4 billion lithium-iron phosphate (LFP) battery cell order with Korea’s LG Power Resolution.
Yesterday, LG reported having secured a $4.3 billion order for LFP battery cells from its new manufacturing facility within the US from August 2027 to July 2030.
The Korean firm didn’t affirm the identification of the shopper, however it did point out that the cells shall be utilized in stationary vitality storage merchandise, which prompted many individuals to take a position that Tesla is behind the order.
Tesla at present produces Megapacks and Powerwalls within the US with LFP battery cells from China.
We beforehand reported that this can be a drawback amid the commerce warfare between the US and China.
As of final yr, a 25% tariff already utilized to battery cells from China, however this elevated to greater than 80% below Trump earlier than he paused some tariffs on China. It stays unclear the place they’ll find yourself by the point negotiations are full and the commerce warfare is resolved, however many count on it to be increased.
Previous to Trump taking energy, Tesla had already deliberate to construct a small LFP battery manufacturing facility within the US to keep away from the 25% tariffs.
The automaker had secured older manufacturing gear from considered one of its battery cell suppliers, CATL, and deliberate to deploy it within the US for small-scale manufacturing.
Tesla just lately unveiled some pictures of the manufacturing facility, which it claims is sort of full, however it’s anticipated to be restricted to lower than 10 GWh of LFP battery cell manufacturing per yr at full capability, whereas Tesla produces greater than 40 GWh of vitality storage merchandise per yr within the US.
LG’s LFP battery cells made within the US would allow Tesla to shut the hole between its personal battery cell manufacturing and its Megapack and Powerwall manufacturing.
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