South Korean battery-materials manufacturer L&F has signed a 3.835 trillion won ($2.9 billion USD) nickel supply deal with Tesla, according to a regulatory filing on Tuesday (via MarketWatch).
The deal holds that L&F will supply high-nickel cathode materials to Tesla from January 1, 2024 to December 31, 2025, according to the South Korean company.
Following the announcement of the supply contract, L&F shares jumped 19 percent during morning trading hours.
Korea Investment & Securities analyst Kim Jung-hwan said on Tuesday that he believes the contract will help Tesla vouch for developing its own supply chain, while the deal helps L&F diversify its worldwide customer base.
In 2023, the firm expects L&F’s cathode shipments to jump by 46 percent amidst the emerging electric vehicle (EV) sector, with operating profits expected to increase by 11 percent.
The news comes as South Korean President Yoon Suk-yeol has been trying to woo Tesla into building a Gigafactory in the country, offering “tailored” benefits to the automaker’s needs.
During a video call in November, Tesla CEO Elon Musk also said that South Korea is a top candidate for the company’s next Asian Gigafactory.
Tesla also built its 100th Supercharger station in South Korea in November, more recently earning the title of the country’s top EV imports with its Model 3 and Y vehicles.
Tesla Increases Model Y Prices in China, South Korea and Australia https://t.co/VSqXCnQifi
— TeslaNorth.com (@RealTeslaNorth) February 17, 2023
