Another massive, secret deal has emerged from South Korea, and all signs point to Tesla again. Battery giant LG Energy Solution announced on Wednesday that it has signed a huge $4.3 billion contract with a major, unnamed corporation. However, just like a recent chip deal with Samsung, reports are already swirling that Elon Musk’s Tesla is the mystery customer.
According to the official filing, the contract kicks off immediately and will run through the end of 2030, with a possible extension of another seven years. The deal is so big that its value is more than the company’s entire revenue for the second quarter of this year. For now, LG says it can’t name its partner due to a confidentiality agreement.
The deal makes sense, as LG Energy Solution has been aggressively expanding its manufacturing in the United States, including building a new plant in Arizona to produce the same kind of lithium iron phosphate batteries that Tesla uses. LG also supplies batteries to other automakers like General Motors. Despite the exciting news, the company added a note of caution in its filing, warning investors that the deal’s value could change or even be terminated.
This is the second time in a week that a massive, secret contract with a South Korean tech giant has been linked to Tesla. Just days ago, Musk confirmed a $16.5 billion chip deal with Samsung. Together, these moves show Tesla is working hard to lock down its supply chain for the critical components that will power its future cars.
