American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

LG Energy signs $4.3B battery supply deal

by admin July 30, 2025
July 30, 2025
LG Energy signs $4.3B battery supply deal

South Korea’s LG Energy Solution has entered into a $4.3 billion battery supply agreement with an undisclosed customer, as per a regulatory filing submitted on Wednesday.

The contract, which became effective on 28 July 2025, will run until July 2030.

This development follows closely on the heels of Tesla’s confirmed $16.5 billion chip deal with Samsung Electronics, signalling deepening commercial ties between US EV makers and South Korean tech firms.

Deal boosts LG Energy’s lithium iron phosphate output

The agreement represents one of LG Energy Solution’s largest lithium iron phosphate (LFP) battery contracts to date.

The contract’s total value exceeds LGES’s second-quarter revenue of 5.6 trillion won ($4.05 billion), highlighting its importance to the firm’s financial performance.

The battery maker noted in its filing with the Korea Exchange that key terms of the deal — including price and duration — may be adjusted, and that the contract could be extended by up to seven years.

The scope of the battery order has not been clarified, and LGES did not disclose whether the LFP batteries are intended for use in electric vehicles or energy storage systems (ESS).

However, LG Energy’s current major customers include Tesla and General Motors, both of whom require high-capacity battery modules for their growing EV and energy storage needs.

US expansion plays a key role in fulfilling the contract

LG Energy Solution has been aggressively ramping up its US-based manufacturing.

Its first North American energy storage battery hub in Michigan began operations in the second quarter of this year.

It is building a new plant in Arizona that will manufacture LFP batteries.

Analysts suggest the $4.3 billion order is closely linked to the Michigan facility, which has now commenced production.

With this contract, LGES aims to boost its presence in the US energy storage market — a segment traditionally dominated by Chinese battery firms.

The new deal may help LGES reduce its lag in LFP battery competitiveness and align with American buyers’ goals of diversifying supply chains away from Chinese manufacturers.

Market implications and confidentiality clause

In its disclosure, LG Energy Solution stated that it would not reveal the identity of the counterparty due to business confidentiality.

This is a standard clause in many long-term supply agreements. Investors have been cautioned to factor in the possibility of revisions or cancellations when making portfolio decisions.

Although LGES shares edged up 0.26% following the announcement, market analysts suggest the real effects of the deal will be felt over time, especially if the contract is indeed with Tesla.

The EV giant has previously stated intentions to source more ESS batteries from outside China, in line with US policy and strategic sourcing goals.

Industry trends and competitive landscape

According to industry data, LG Energy Solution trails Chinese competitors in the LFP battery space.

However, its growing traction in North America may offset this disadvantage.

If the Tesla link is confirmed, it would strengthen LGES’s positioning in the US market and give it a competitive edge against regional rivals.

The new deal reflects a broader industry trend where American EV and ESS firms are diversifying their supplier base amidst rising geopolitical and trade tensions.

It also reinforces South Korea’s role as a strategic battery manufacturing hub, particularly in the context of US supply chain realignment.

The post LG Energy signs $4.3B battery supply deal appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Interview: SAEL CEO Laxit Awla on closing India’s solar storage gaps and navigating US tariffs
next post
Starbucks stock forecast as CEO hails turnaround: can it hit $116?

Related Posts

Skydance-Paramount $8.4B merger: will it clear regulatory scrutiny?

January 3, 2025

Paramount says CEO Bob Bakish is stepping down,...

May 2, 2024

Why activist investor Ancora Holdings wants US Steel...

January 27, 2025

Post-dot-com bubble playbook suggests these two sectors could...

April 8, 2025

Hims & Hers Health says it will offer...

May 22, 2024

Disneyland workers reach tentative deal with company, averting...

July 25, 2024

US stocks surge at open: S&P up 0.9%,...

June 7, 2025

Trump admin bars Harvard from enrolling international students

May 23, 2025

Tata Motors’ $4.5B Iveco bid sends shares sliding:...

July 30, 2025

Fed’s key inflation measure cooled slightly from a...

July 27, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • India proposes 3-year steel import tariff to counter China

      August 18, 2025
    • Soho House to go private in $2.7B deal led by MCR Hotels

      August 18, 2025
    • As Zelenskiy heads to face Trump, allies hold crisis talks over forced-deal fears

      August 17, 2025
    • US tariffs push India away from Russian oil, bolstering Iraq’s position in Asia

      August 10, 2025
    • Under Armour shares tumble 21% as weak demand and $100 million tariff hit darken outlook

      August 10, 2025

    Categories

    • Business (3,712)
    • Investing (2,756)
    • Latest News (2,039)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved