South Korea-based LG Vitality Answer introduced Wednesday that it had signed a $4.3 billion contract for supplying batteries to a significant company, with out naming the shopper.

The efficient date of contract — receipt of orders — was Tuesday and it’ll conclude on the finish of July, 2030. Throughout this era, the counterparty won’t be disclosed to keep up enterprise confidentiality, the corporate’s filing with the Korea Exchange showed Wednesday. Reuters reported that Tesla was the counterparty.

Earlier this week, Tesla CEO Elon Musk confirmed that the EV maker was behind a beforehand undisclosed $16.5 billion chip contract with South Korea’s Samsung Electronics. 

LG Vitality Answer mentioned in its submitting that particulars of the settlement such because the deal quantity had been topic to vary and the contract interval might be prolonged by as much as seven years. 

The worth of the disclosed contract eclipses the corporate’s 5.6 trillion Korean received ($4.05 billion) income for the second quarter of this 12 months.

“Buyers are suggested to rigorously contemplate the opportunity of modifications or termination of the contract when making funding choices,” the corporate cautioned. It is shares traded up 0.26% on Wednesday. 

The submitting didn’t make clear whether or not the lithium iron phosphate batteries can be utilized in autos or power storage programs. Its main battery clients embrace American electric-vehicle makers Tesla and General Motors.

The corporate has been increasing its manufacturing within the U.S., with its first North American ESS battery manufacturing hub, positioned in Michigan, coming online within the second quarter of this 12 months. The corporate can also be constructing a plant in Arizona that may produce lithium iron phosphate batteries. 

The deal is considered one of LG Vitality Answer’s largest lithium iron phosphate contracts up to now, and is predicted to be tied to the Michigan plant which lately started manufacturing, Liz Lee, an affiliate director at Counterpoint Analysis advised CNBC.

“Whereas LGES has lagged Chinese language gamers in EV [lithium iron phosphate], this main U.S. ESS order will assist offset that and alerts rising traction within the US power storage market,” she mentioned.

Assuming that Tesla is the counterparty, it could match their beforehand acknowledged purpose of lowering reliance on China for ESS batteries, she added.

LG Vitality Answer declined to touch upon particulars of the deal. Tesla didn’t reply to CNBC’s request for remark.