US confirms Tesla as buyer of LG Energy Solution's July battery deal
Seoul, March 17 (IANS) The US government has confirmed that global electric vehicle (EV) giant Tesla was the customer in a battery supply deal secured by LG Energy Solution in July, industry sources said.
The US Department of the Interior posted the results of the Indo-Pacific Energy Security Ministerial and Business Forum held in Tokyo over the weekend, which included the Tesla-LG Energy Solution deal, reports Yonhap news agency.
"Tesla and LG Energy Solution are expanding their partnership with a supply agreement to build a US$4.3 billion LFP prismatic battery cell manufacturing facility in Lansing, Michigan, launching production in 2027," the U.S. department said on its website.
"American-made cells will power Tesla's Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain," it added.
In July, LG Energy Solution said it signed a lithium iron phosphate (LFP) battery supply deal with an overseas client, without disclosing the buyer.
The South Korean battery maker said it will supply LFP batteries to the unnamed client for three years, from Aug. 1, 2027, to July 31, 2030.
Industry watchers had speculated Tesla was the counterpart, but LG Energy Solution refrained from providing details, citing business confidentiality.
In July, LG Energy Solution Ltd, South Korea's leading battery maker, said it has signed a 5.9 trillion-won ($4.26 billion) lithium-ion phosphate (LFP) battery supply deal with an overseas client.
In a regulatory filing, LGES said it will supply LFP batteries to the unnamed client for three years, from Aug. 1, 2027, to July 31, 2030.
The contract value is equivalent to 23.2 percent of the company's annual sales of 25.6 trillion won last year, the filing said.
The contract period and value are subject to change depending on the outcome of further consultations with the client, it added.
In the United States, LGES operates three battery cell plants in Ohio, Tennessee and Michigan. The Michigan plant currently produces LFP batteries for energy storage systems (ESSs).
—IANS
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