Tesla has signed a new $3 billion deal with L&F, a South Korea-based manufacturer of battery cathode materials. Here are the details…
The year 2022, which we left behind, caused many building blocks to change in the automotive industry. Even the most stubborn brands of the market accepted the reality of electric transformation and restructured their companies. Tesla, which has been silent for a while because it has been dealing with prototypes for a while, gave the necessary answer with the $ 3 billion deal it signed today.
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Tesla agreed with the South Korean company: Doubling battery production!
Today, L&F, South Korea’s famous battery cathode materials company, announced that they have signed a new agreement with Tesla worth 3.83 trillion KRW (Korean Won), ie $ 2.9 billion. The duration of the contract is between 1 January 2024 and 31 December 2025, i.e. 2 years.
These two companies have been working together in the past years. However, the amount of the agreement signed in 2022 was 970.8 billion KRW. In other words, approximately 4 times the amount has been transferred. Of course, this time the agreement covers two years.
When we look at the details, L&F said that the high nickel cathode materials it will supply are intended to be used in the automotive, power generation and storage sectors in the US and other regions. In addition, he stated that the unit sales prices of the materials may increase during the contract period, depending on fluctuations in lithium prices.
In other words, Elon Musk gave L&F a blank cheque to purchase materials to be used in battery production. The reason behind this is Tesla’s plans for growth and expansion into new markets, as well as the new electric cars, trucks and lorries it will offer for sale.
After the L&F shares rose around 19 per cent after the agreement, some details that were not included in the contract were given in the statement made by the company officials. Hana Securities researcher Kim Hyeon-soo, who put this data together, said that Tesla will supply more than 77 tonnes of high nickel cathode material, equivalent to 783 thousand electric vehicles with this agreement.
