Image: Tesla
Tesla’s Cybertruck program appears to be having ripple effects across its supply chain, with one key battery materials supplier drastically scaling back a previously massive agreement. According to a report from GuruFocus, South Korean battery materials firm L&F has slashed the value of a long-term supply contract tied to Tesla by roughly 99%, following delays and shifting expectations around the Cybertruck.
L&F disclosed that a contract originally announced in February 2023, valued at 3.83 trillion won (about $2.67 billion USD), has been revised down to just 9.73 million won, or roughly $6,800 USD. The agreement covered high-nickel cathode materials that were expected to be supplied between January 2024 and December 2025 and were reportedly intended for Cybertruck batteries.
At the time, the deal was seen as a major win for both sides, with Tesla securing critical materials as part of a broader push to lock in battery supply. Tesla had signed a multi-billion-dollar nickel deal with South Korea’s L&F back in early 2023, reflecting ambitious production targets for next-generation vehicles like the Cybertruck.
Those expectations now appear to have changed. The GuruFocus report noted that actual shipments were limited as Cybertruck development was repeatedly postponed, while some buyers may have opted instead for higher-volume models like the Model 3 and Model Y. Broader policy and economic factors, including the removal of Inflation Reduction Act subsidies, were also cited as weighing on final supply volumes.
The timing is notable. While Tesla has begun Cybertruck deliveries in its first overseas market of South Korea, the global rollout has been slow — the all-electric pickup is still unavailable in Europe, for example. Tesla also discontinued its cheapest Cybertruck model in the U.S. this fall, a move widely seen as a response to softer-than-expected demand.
L&F said the contract revision was unavoidable given changes in the global EV market and battery supply conditions, stressing that shipments of its flagship high-nickel products to other customers remain unaffected. Still, the disclosure sent L&F shares down more than 6% in Seoul trading.
For Tesla, the sharp reduction underscores how quickly plans around the Cybertruck have shifted, and how those changes can cascade through suppliers as production timelines and demand assumptions are reset.
