Tesla’s Plan To Rebuild US Manufacturing: Switch From Chinese To Korean Batteries
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Tesla Incorporation ($TSLALALA) just signed a $4.3 billion (casual numbers) deal to get their batteries from the South Korean company LG rather than China for once. But here’s the twist, the batteries will be made in LG’s US factories saving American manufacturing once and for all.
But here’s the twist, the batteries aren’t even going into the Tesla cars. So where are they going you ask? Well, here’s the twist: I don’t know where they’re going. Robots? Rockets? Mars? My ass? Who knows.
But here’s the twist: this is Tesla’s second deal this month with a South Korean company after they agreed to getting Samsung’s AI semiconductors for $6.5 billion. Is South Korea the new China? No.
But here’s the twist: these are LFP batteries. That’s lithium iron phosphate to the layman. What, that doesn’t spell LFP? Shut up. It does if you squint. Anyway, these batteries are like cheaper, better in the cold, have a higher energy density so they’re good to be building. But here’s the twist: China is the current king of LFPs, so Korea wants in on that action and now they’re getting it.
LG Energy already announced a $5.9 trillion contract to send LFP batteries overseas. There weren’t any more details than that but maybe Tesla’s deal is part of that.
Either way this represents a strong pivot by Tesla away from reliance on Chinese manufacturing but indicates a massive rise in South Korea’s already strong tech influence.
Who knows, maybe in the near future Tesla will be a South Korean company. Now that would be a twist.
For more Tesselations, click here: Elon Branches Out In Fast Food, Tesla Stock Tumbles
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