South Korea’s LG Energy Solution (LGES) has inked a major $4.3 billion battery supply agreement, with industry sources strongly indicating that Tesla is the unnamed partner behind the blockbuster deal.
In a regulatory filing, LGES announced it had secured a long-term contract to supply lithium-ion battery cells and modules to a “leading North American EV manufacturer” from 2025 through 2028. While the company declined to name the client, multiple media outlets and analysts have pointed to Tesla — the world’s top electric vehicle (EV) maker — as the likely recipient.
South Korea’s LG Energy Solution (LGES) has inked a major $4.3 billion battery supply agreement, with industry sources strongly indicating that Tesla is the unnamed partner behind the blockbuster deal.
In a regulatory filing, LGES announced it had secured a long-term contract to supply lithium-ion battery cells and modules to a “leading North American EV manufacturer” from 2025 through 2028. While the company declined to name the client, multiple media outlets and analysts have pointed to Tesla — the world’s top electric vehicle (EV) maker — as the likely recipient.
If confirmed, this would mark a significant expansion in the strategic partnership between Tesla and LGES, further solidifying South Korea’s position as a critical player in the global EV battery supply chain.
The contract is expected to supply high-nickel batteries — known for their higher energy density and longer driving ranges — which are key to powering Tesla’s next-generation vehicles, including its Model Y and upcoming Cybertruck.
The deal comes as Tesla continues to diversify its battery supply sources beyond Panasonic and CATL, aiming to mitigate risk and meet aggressive production targets amid surging global EV demand. It also underscores LGES’s strategic push to deepen its presence in the North American market, where it’s building multiple gigafactories in partnership with General Motors and other automakers.
With the global EV race heating up, battery supply has become a critical bottleneck. This deal gives LGES a strong competitive edge, adding to its already robust order book and strengthening investor confidence.
“This agreement is a testament to the trust global automakers place in our technology and manufacturing capabilities,” said Youngsoo Kwon, CEO of LG Energy Solution. “We are proud to play a pivotal role in accelerating the electric vehicle revolution and supporting cleaner transportation worldwide.”
LGES shares rose over 3% on the Seoul exchange following the announcement, reflecting strong investor optimism. If the Tesla connection is formally confirmed, the deal would rank among the most valuable battery supply contracts in the industry to date.
