Tesla has entered into a $2.9 billion (3.8347 trillion won) contract with South Korean L&F for the supply of high-grade cathode materials. The deal was spotted through a public disclosure.
L&F will supply the material within two years, starting at the beginning of 2024. The deal will run until December 31, 2025.
Industry watchers say the deal covers about 77,000 tons of high-nickel cathode material, enough to power about 783,000 EVs. L&F, however, remarked that the price is based on current market conditions. It could go up or down based on the future costs of lithium. The price may also be affected by exchange rate fluctuation. (via Naver)
Tesla is expanding rapidly and plans to set new delivery records this year. It sold more than 1.3 million units last year, and has stated goals to reach 1.8 million deliveries in 2023, with CEO Elon Musk there is a chance that number could be as high as 2 million.
With the Semi truck finally getting into production and the Cybertruck not far behind, Tesla needs all the battery it can get.
Other companies are also rushing to secure their battery supply as the market gets more competitive. Volkswagen and Mercedes-Benz signed a supply deal with Canada on EV battery raw materials last year. Honda also partnered with Hanwa to source battery materials.
