The deal also reduces Tesla’s reliance on Chinese suppliers. LGES will produce the LFP cells at its factory in Michigan, says Reuters, and so they will not be subject to the Trump trade war tariffs, unlike Chinese-made cells from CATL.

Tesla (TSLA) has reached a $4.3 billion agreement with South Korean battery manufacturing company LG Energy Solution to procure lithium iron phosphate ((LFP)) batteries, according to multiple published reports citing sources familiar with the matter.

LG Energy Solutions and Tesla have signed a $4.3 billion deal for LFP batteries. LG will supply batteries to Tesla from its U.S. facility.