Tesla taps LG Energy for US storage batteries in $4.3 billion deal

Tesla has selected LG Energy Solution (LGES) to supply lithium iron phosphate (LFP) batteries for its US energy storage products in a deal reportedly worth $4.3 billion, according to South Korean media.

From ESS News

As major players increasingly invest in stationary energy storage to stabilize power grids and support renewable integration, a significant new deal is set to reshape the supply chain. Tesla has reportedly tapped LG Energy Solution (LGES) for a massive supply of US-made batteries, signaling a strategic push to bolster its energy division.

According to reports from The Korean Herald, the deal is valued at $4.3 billion and will see LGES supply LFP batteries from August 2027 through July 2030.

Industry observers reportedly said that the batteries are specifically destined for stationary storage with Tesla’s battery energy storage systems (BESS), including products like the Megapack. The South Korean company’s strategic focus for its US manufacturing plants have been increasingly geared toward producing LFP cells optimized for BESS applications.

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