Tesla has reportedly struck a new $4.3 billion deal with LG Energy Solution (LGES), a major South Korean battery manufacturer. The contract is for the supply of lithium iron phosphate (LFP) batteries, specifically for stationary energy storage systems and not for electric vehicles.

South Korea's LG Energy Solution has signed a $4.3 billion deal to supply Tesla with energy storage system batteries, said a person familiar with the matter, as the U.S. company looks to reduce reliance on Chinese imports due to tariffs.

The South Korean battery maker secured a deal to supply Tesla with lithium iron phosphate batteries for three years.