The year 2022 saw many changes in the automotive industry. Even the most stubborn brands in the market have accepted the reality of electric conversion and restructured their companies. Tesla, which has been working on prototypes for some time, has finally responded with the $3 billion deal it signed today.
Tesla has reached an agreement with a South Korean company to double its battery production!
Today, L&F, a South Korean company famous for producing cathode materials for batteries, announced that it has signed a new agreement worth 3.83 trillion KRW ($2.9 billion) with Tesla. The contract period runs from January 1, 2024 to December 31, 2025, lasting two years.
These two companies have worked together in the past, but the value of the agreement signed in 2022 was 970.8 billion KRW, or about one-fourth of the current amount. Of course, this time the agreement covers two years.
Looking at the details, L&F said that the high-nickel cathode materials it will supply are intended to be used in the automotive, energy generation, and storage sectors in the United States and other regions. In addition, it stated that the unit selling price of the materials could rise during the contract period due to fluctuations in lithium prices.
So, Elon Musk has given L&F an open check to purchase the materials needed for battery production. The underlying reason is Tesla’s growth and plans to enter new markets, as well as its new electric cars, trucks, and vans.
After the agreement, L&F’s shares rose by about 19%, and some details that were not included in the contract were given by company officials. Kim Hyeon-soo, a researcher at Hana Securities who compiled this information, said that Tesla will obtain more than 77 tons of high-nickel cathode material, equivalent to 783,000 electric vehicles.
What do you think about this? Don’t forget to share your thoughts in the comments!
{{user}} {{datetime}}
{{text}}