Tesla has signed a $4.3B battery supply deal with LG Energy Solution, shifting energy storage production to the U.S. and reducing reliance on China.

Tesla is rumored to be behind a large $4 billion lithium-iron phosphate (LFP) battery cell order with Korea’s LG

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.