Musk reduces dependence on China: in addition to Samsung chips, Tesla electric cars will get batteries from LG
Tesla continues to reduce its dependence on Chinese suppliers of components for its electric cars and strengthens business relations with South Korean tech giants.
We recently reported that Elon Musk's company (Elon Musk) Tesla's electric cars will get Samsung's AI6 chips: the parties have signed a $16.5bn contract to supply AI6 chips, and now another long-term project has been revealed.
Here's What We Know
According to Reuters, Tesla has entered into a $4.3bn agreement with LG Energy Solution (LGES) to supply lithium-iron-phosphate (LFP) batteries for electric vehicles.
The batteries will be manufactured at LGES' plant in Michigan, allowing Tesla to shorten its supply chain and reduce economic pressure from duties on Chinese goods.
The contract will take effect from August 2027 and run until July 2030.
Sources: Reuters
