LG Energy Solution, a South Korea-based battery manufacturer, announced on Wednesday that it has secured a massive $4.3 billion battery supply agreement with a major global company—though the buyer’s identity remains confidential for now.
According to a regulatory filing on the Korea Exchange, the agreement took effect Tuesday and is set to run through July 2030. The counterpart’s name will be withheld to protect business confidentiality, though industry speculation points to Tesla as the likely buyer, as reported by Reuters.
Just days earlier, Tesla CEO Elon Musk confirmed that his company was involved in a previously undisclosed $16.5 billion semiconductor deal with Samsung Electronics, another South Korean tech giant.
LG Energy noted that the specifics of the agreement, including its total value, are subject to change. The contract duration could potentially be extended by an additional seven years. The scale of this deal even surpasses the company’s second-quarter revenue, which stood at 5.6 trillion Korean won (approximately $4.05 billion).
The firm advised investors to consider potential changes or even the cancellation of the deal when making financial decisions. At the time of the announcement, LG Energy Solution’s shares were down slightly by 0.26%.
While the filing did not specify whether the lithium iron phosphate (LFP) batteries would be used in electric vehicles or for energy storage purposes, LG Energy counts major automakers like Tesla and General Motors among its core clients.
The company continues to ramp up its U.S. operations, with its first North American energy storage system (ESS) battery plant going live in Michigan earlier this year, and a second facility under construction in Arizona dedicated to producing LFP batteries.
