Tesla to Seal Major Battery Deal with Samsung SDI, Shifting Away from Chinese Suppliers
Tesla is in advanced negotiations with Samsung SDI for a $2.1 billion supply of energy storage system battery cells. This deal underscores Tesla's strategy to diversify away from Chinese battery suppliers and expand its American operations. The collaboration is expected to boost Samsung SDI's position in the North American market.
- Country:
- South Korea
Tesla is reportedly nearing a multi-billion-dollar agreement with Samsung SDI for the supply of energy storage system batteries, as per sources mentioned in the Korean Herald. The projected deal, valued at around 3 trillion won ($2.1 billion), signifies Tesla's strategic pivot from reliance on Chinese supply chains.
Elon Musk, CEO of Tesla, recently elaborated on new developments, stating that different variants of Tesla's AI5 chip will be produced at TSMC and Samsung due to distinct design-to-physical conversions. Tesla anticipates small-scale production in 2026, with full-scale production slated for 2027. This aligns with Tesla's incremental technological advancements.
The batteries, primarily lithium-iron-phosphate cells, will be manufactured at Samsung SDI's joint venture in Indiana. This venture marks Samsung SDI's further integration into North America's energy storage sector, particularly as its domestic rival, LG Energy Solution, steps up its supply to Tesla.
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