LG Energy Solution signs $4.3-billion battery supply contract

SEOUL, July 30, 2025 – LG Energy Solution has signed a USD 4.3-billion battery supply agreement with a major corporation – reportedly Tesla – the company said in a filing with the Korea Exchange on Wednesday.

The contract begins on July 29 and runs through July 2030, with the counterparty undisclosed for confidentiality reasons. Reuters reported Tesla as the client.

The deal marks one of LG Energy Solution’s largest lithium iron phosphate contracts and is believed to be linked to its new Michigan energy storage battery plant.

Details such as the contract value and duration are subject to change, with a possible seven-year extension. “Investors are advised to carefully consider the possibility of changes or termination of the contract when making investment decisions,” the company said.

Tesla CEO Elon Musk this week confirmed a separate USD 16.5-billion chip supply deal with Samsung Electronics. The LG Energy Solution contract exceeds the firm’s Q2 revenue of 5.6 trillion Korean won (USD 4.05 billion).

LG Energy Solution is expanding US operations with an ESS battery plant in Michigan now online and another under construction in Arizona. The company supplies batteries to EV makers including Tesla and General Motors.

Based in South Korea, LG Energy Solution is a global provider of lithium-ion batteries for EVs, mobility, IT and energy storage systems. The company operates manufacturing plants in South Korea, the US, Poland, China and Indonesia and is scaling production to meet global demand.

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