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Investing.com-- Tesla Inc (NASDAQ:TSLA) and South Korea’s LG Energy Solution Ltd (KS:373220) signed a $4.3 billion contract for lithium iron phosphate batteries for energy storage, Reuters reported on Wednesday.
The batteries will be supplied from LG’s U.S. factory, Reuters reported, citing a person familiar with the matter.
LG had earlier on Wednesday announced a $4.3 billion contract to supply battery and storage technology, but had not named the customer.
LG Energy is among the world’s largest battery suppliers, and is a key supplier of lithium-ion batteries to Tesla for its Model 3 and Model Y vehicles, which are produced in China and Europe.
It was not immediately clear whether the batteries being supplied under the new contract will be for vehicles or energy storage.