South Korean battery component manufacturer L&F announced a massive reduction in the value of its supply agreement with Tesla.
The original deal, set to run from January 2024 through December 2025, was valued at $2.9 billion for supplying high nickel cathode materials. L&F has now revised the agreement's value down to just $7,386.
Cathode materials are critical components for manufacturing electric vehicle batteries. This dramatic decrease suggests a significant change in the supply and demand dynamics between the two companies.
The revision implies potential alterations to Tesla's production plans or a shift toward alternative suppliers. Initial reports did not detail a specific reason for the change.