South Korea’s LG Energy Solution has signed a major battery supply agreement worth $4.3 billion with an unnamed corporation, the company announced on Wednesday. The contract, which officially went into effect on Tuesday, is set to run through July 2030, with an option to extend it for up to seven more years.
While LG did not identify the customer in its filing with the Korea Exchange—citing confidentiality—Reuters reported that Tesla is behind the deal. This comes just days after Tesla CEO Elon Musk confirmed a separate $16.5 billion chip supply agreement with Samsung Electronics, also based in South Korea.
The deal’s value exceeds LG Energy Solution’s second-quarter revenue of 5.6 trillion Korean won (around $4.05 billion), highlighting the scale of this agreement. However, the company noted that the terms—including the final contract amount—could be adjusted, and it urged investors to remain cautious, acknowledging the possibility of changes or even termination.
LG Energy didn’t specify whether the batteries involved would be used in electric vehicles or in energy storage systems. Both applications are possible, as the company supplies major EV makers, including Tesla and General Motors.
The filing also didn’t mention which type of batteries are involved, but the company has been increasing its focus on lithium iron phosphate (LFP) cells. Its first North American energy storage system (ESS) battery plant began operations in Michigan in Q2 2025, and another facility under construction in Arizona will also manufacture LFP batteries.
Shares of LG Energy Solution dipped slightly, down 0.26% following the announcement.
Neither LG nor Tesla has officially commented on the reported link between the two companies regarding this deal.
