LG Energy Solution Signs $4.3 Billion Battery Deal with Undisclosed Partner

South Korea’s LG Energy Solution has entered into a battery supply contract valued at $4.3 billion with an undisclosed company. The agreement was disclosed in a regulatory filing with the Korea Exchange on Wednesday. The deal is effective from July 29, 2025, and will remain in force through the end of July 2030. The filing also stated that the contract may be extended by up to seven years.

The identity of the buyer was not revealed, with LG citing business confidentiality. However, a Reuters report indicated that the partner may be Tesla, though neither LG Energy nor Tesla has issued a confirmation or comment.

The battery maker cautioned that the terms of the agreement, including its total value and timeline, are subject to change. In its statement, LG Energy said, “Investors are advised to carefully consider the possibility of changes or termination of the contract when making investment decisions.”

This contract surpasses LG Energy’s reported second-quarter revenue of 5.6 trillion Korean won, equivalent to around $4.05 billion. It remains unclear whether the batteries will be used for electric vehicles or energy storage systems.

LG Energy Solution is a key battery supplier to major automakers including Tesla and General Motors. The company is also expanding its manufacturing capabilities in North America. Its Michigan-based energy storage battery hub became operational in the second quarter of this year, and a new plant in Arizona is under construction to produce lithium iron phosphate (LFP) batteries.

LFP batteries are known for their durability, safety, and lower production cost, making them a popular choice for electric vehicles and large-scale energy storage. While the filing did not confirm the battery type for the new contract, industry analysts suggest LFP is a likely candidate.

This deal follows closely behind Tesla CEO Elon Musk’s confirmation of a $16.5 billion chip procurement agreement with Samsung Electronics, another South Korean tech leader. That announcement has fueled further speculation about Tesla’s strategic sourcing relationships in the region.

LG Energy Solution’s stock fell by 0.26 percent following the disclosure. The company emphasized the possibility of revisions to the agreement and urged investors to be mindful of its conditional terms.

As of now, there is no official confirmation on the buyer, and both companies have declined to respond to media inquiries.