US EditionSouth Korea's L&F Slashes Value of Battery Material Supply Deal with Tesla
L&F slashed its Tesla battery supply contract by 99% to 9.73 million won due to Cybertruck delays and policy shifts, impacting a $2.67 billion deal announced in 2023.
- On Monday, L&F Co., South Korean battery material supplier, disclosed a 3.83 trillion won supply deal with Tesla Inc. was cut to 9.73 million won, a roughly 99% reduction in a regulatory filing.
- L&F said the change reflected a supply quantity reduction after the high‑nickel cathode was contracted from January 2024 through this month for Cybertruck batteries, with scant material provided due to repeated delays.
- Technical reporting highlights that 4680 cells remain hard to produce at scale due to the dry‑electrode process, limiting demand despite Giga Texas's capacity of $25,000 units annually and the Cybertruck's run rate of roughly 20,000 to 25,000 units.
- Market reaction was swift as shares of L&F fell more than 6% after the close of trading in Seoul while L&F said flagship product shipments to major Korean cell manufacturers remain smooth.
- Policy shifts matter because Tesla cut supply amid Inflation Reduction Act subsidy losses, 0% APR incentives in June reveal soft demand, and Elon Musk insists on early 2026 launch despite unresolved autonomy.
13 Articles
13 Articles
South Korea's L&F slashes value of battery material supply deal with Tesla
South Korean battery material maker L&F said on Monday the value of its 2023 supply deal with Tesla has shrunk to $7,386 from an earlier projection of $2.9 billion, without providing reasons for the sharp cut.
East Bay Times
Tesla Cybertruck flop proves costly for one supplier
By Hyonhee Shin, Bloomberg A supplier to Tesla Inc. ended up providing a tiny fraction of battery material the carmaker ordered almost three years ago, in part due to issues with the Cybertruck, according to a person familiar with the matter. South Korea’s L&F Co. disclosed Monday that its 3.83 trillion won ($2.67 billion) supply contract with Tesla, first announced in February 2023, had been slashed to just 9.73 million won. In a filing, L&F sa…
South Korea's L&F says value of battery material supply deal with Tesla cut to $7,386
SEOUL, Dec 29 : South Korean battery material maker L&F said on Monday the value of its 2023 supply deal with Tesla has shrunk to $7,386 from an earlier projection of $2.9 billion. In 2023, L&F said it had signed a deal to supply high nickel cathode materials to Tesla and its affiliates i
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