Tesla falls $ 4.3 billion LFP battery with LGES, $ 16.5 billion chip with Samsung

Last update in: July 30, 2025, 11:26 pm

Korea’s daily economic reports that Tesla and LG Energy Solution concluded a $ 4.3 billion deal for LFP batteries produced in LGES factories in Michigan, Ouhayu and Tennessee. Although LGES has not officially disclosed who is the buyer, the reference to the Construction Agreement – Tesla loves to wrap all its commercial transactions within the non -disclosure agreements – South Korea sources claim that Tesla is Jupiter.

So far, Catl – the largest battery manufacturer in the world – was the main battery supplier in Tesla, but the chaos of the recent tariff from the failed American administration, along with the growing company Animus in the United States towards Chinese companies, has transformed sufficient financial and integration account to transfer the guards to the line.

The deal to dissolve the LG energy began to introduce the batteries that start in August 2027 and its continuation until the end of July 2030. The new contract is equivalent to about 25 percent of LGES sales in 2024.

LG Energy Solution increases production in the United States. KED observers have told that batteries are likely to be used in TESLA power storage devices, as LG Energy manufacturing factories in the United States are intended for improved LFP batteries for energy storage applications.

LG Energy turns towards LFP batteries, which are more expensive and suitable for large market EVS, amid a slower market transition than expected towards electric cars, many of which depend on batteries that include cobalt, nickel and manganese in their chemistry. These batteries have higher energy intensity but also more expensive – the downside at a time when EV prices in the United States are due to the end of the Federal tax credit on September 30 this year.

LG Energy Solution is also a partner in Ultium cells, a joint project with General Motors. Altium Cells converts their production lines to produce high-nickel-nickel-Nichelin battery cells in Tennessee into the production of LFP battery cells for the energy storage market.

In March, LG Energy Solution signed a contract with DeTa Electronics Global Management Management to provide 4 GWH of energy storage batteries for residential buildings in the United States. Delta Electronics is located in Taiwan and performs Tesla and Apple among its main customers. During the phone call in the second quarter in July, LG Energy Solution said it expects a significant profit growth in the second half, with compensation for ESS batteries from EV batteries.

Samsung signs of chips with Tesla

Also this week, Samsung Electronics, the best memory chip maker in the world, has announced that it had signed a contract worth 16.5 billion dollars, which raises hopes for obtaining an inseparable municipal work that has been struggled with continuous losses in modern parties. Samsung only said it signed the deal with a “big global company”. The contract became valid on July 24, 2025, and will continue until the end of 2033.

Samsung did not specify the customer, but Elon Musk left the cat from the bag when it was posted on the anti -community media channel that Samsung will produce the A16 chips of the next generation of Tesla at the Manufacturing facility in Texas. Musk said at x.

Samsung currently manufactures the A14 chip, while TSMC will produce A15 chip – a recently completed design – initially in Taiwan and then at the TSMC manufacturing facility in Arizona. The A16 chip will be produced in the 37 billion dollar Samsung Museum in Taylor, Texas, starting in 2026.

The new contract is 7.6 percent of the SAMSUNG annual sales revenue, making it one of the largest Foundry orders that the company received from one customer. Industry officials and some media reports said Samsung can provide semiconductors of the fully -driving TESLA foil. Analysts said that the deal could mark a long -awaited turning point for Samsung Foundry, which is competing directly with the Taic semiconductor manufacturer (TSMC), the largest mascara craft manufacturer in the world.

“This contract indicates that Samsung’s return on the advanced contract, especially the nanometer technology, finally, to viable levels,” said a semiconductor executive official near the command in the daily economic Korea. “It also indicates the renewal of customer confidence and a possible transformation in the momentum of the market.”

Analysts said that the latest masculine contracts will be born about 2.5 trillion Won annually until the end of 2033 – about 10 % of the estimated Samsung annual revenue – and providing the necessary measure to improve production savings. The chips that will be produced under the new contract are expected to benefit 2 nm.

If it succeeds, Taylor, Texas, Samsung can diversify production beyond its home base in Korea and include itself in the supply chain of American semiconductors, a strategic priority as the United States tries to increase its ability to make local chips. “This deal is more than just revenues,” said industry analyst. “It is a bet on the ability of Samsung to present the next generation of silicon and re -put it in the era of artificial intelligence. If they obtain it properly, this may be the moment of water gatherings.”

Intel and TSMC are strongly looking for major American agents, including NVIDIA, Google and Amazon, all of whom are racing to secure the leading capacity amid the boom of artificial intelligence. KED analysts told that Samsung’s success in obtaining a high -value deal can open doors on additional orders and help them get rid of the years of doubts surrounding masculine aspirations.

The main news of Tesla is that she finds itself able to make high dollar obligations such as its commercial conflicts in the United States, Europe and China. It is not quite clear the number of chips that Samsung will produce for Tesla cars and the number of Xai is intended. On the energy storage interface, it is also unclear how the battery storage will be subject to the American axis heading to more fossil fuels and less renewable energy. Interesting times in the future to Tasla. Stay followers.