The year 2022, which we left behind, caused many building blocks to change in the automotive industry. Even the most stubborn brands in the market have embraced the reality of the electric transformation and restructured their companies. Tesla, which has been silent for a while because it has been dealing with prototypes, gave the necessary answer with the 3 billion dollar deal it signed today.
Tesla agreed with the South Korean company: It doubles its battery production!
Today, L&F, South Korea’s famous battery cathode materials manufacturer, announced that it has signed a new deal with Tesla valued at KRW 3.83 trillion (Korean Won), or $2.9 billion. Let’s say that the duration of the contract is from January 1, 2024 to December 31, 2025, that is, for 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, a transfer of approximately 4 times the amount has been achieved. Of course, this time the deal covers two years.
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When we look at the details, L&F said that the high nickel cathode materials it will supply are aimed to be used in the automotive, power generation and storage sectors in the USA and other regions. In addition, he stated that the unit sales prices of materials may increase during the contract period due to fluctuations in lithium prices.
In other words, Elon Musk gave a blank check to L&F in order to purchase the materials to be used in battery production. The reason behind this is the new electric cars, trucks and trucks that Tesla will offer for sale with its plans to grow and expand into new markets.
After the agreement, L&F shares increased by around 19 percent, and the company officials gave some details that were not included in the contract. Combining this data, Hana Securities researcher Kim Hyeon-soo said that with this agreement, Tesla will supply more than 77 tons of high nickel cathode materials, equivalent to 783 thousand electric vehicles.
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