Latest news with #TravisAxelrod
Korea Herald
30-07-2025
- Automotive
- Korea Herald
LG Energy Solution wins $4.3b battery deal, likely with Tesla
Korean battery-maker gains edge as US tariffs squeeze China's CATL LG Energy Solution has secured a 5.9 trillion won ($4.3 billion) deal to supply lithium-iron phosphate battery cells, likely for Tesla's energy storage systems, solidifying its position as the only producer of these cost-effective batteries in the US. According to LG Energy Solution's regulatory filing on Wednesday, it will supply LFP cells for a global client for three years from Aug. 1, 2027, to July 31, 2030, with the possibility of extending the contract to 2034. This agreement represents 23 percent of last year's sales revenue of 25.6 trillion won, marking the company's largest ESS contract. Assuming a price range of $85 per cell, media reports project the total supply amounts to approximately 50 gigawatt-hours worth of cells. LG Energy Solution declined to share details of the deal, citing confidentiality, but industry sources anticipate that the company will be supplying batteries for Tesla's ESS products. LG Energy Solution is currently manufacturing LFP cells for ESS in its Michigan plant, targeting the US market. Meanwhile, its LFP battery products for electric vehicles, intended for Renault Group, are slated for production at its Wroclaw facility in Poland. During Tesla's conference call for the first quarter of this year, Travis Axelrod, head of investor relations at Tesla, said, 'The impact of tariffs on the energy business will be outsized since we source LFP battery cells from China. We are in the process of commissioning equipment for the local manufacturing of LFP battery cells in the US, however, the equipment that we have can only service a fraction of our total installed capacity.' 'We've also been working on securing additional supply chains from non-China-based suppliers, but it will take time.' In response to industry headwinds from US tariffs that restrict the use of batteries and battery components sourced from China, Tesla has accelerated construction of its LFP cell manufacturing plant for ESS in Nevada, with recent reports indicating the site is nearing completion. Given Tesla's strong business relationship with China's CATL for its ESS business, a key strategy has been to incorporate equipment and battery designs from the Chinese battery behemoth at its Nevada facility. However, Tesla has recognized the limitations in expanding its battery cell capacity to meet the rapidly growing ESS market in the US, fueled by artificial intelligence data centers and the demand for reliable electricity supply solutions. Lee Ho-geun, a car engineering professor at Daeduk University, noted, 'There may be a delay before Tesla ramps up its production capacity (at its Nevada plant). This potential production gap likely prompted Tesla to turn to LG Energy Solution, which seems to have offered competitive pricing compared to tariff-impacted Chinese companies, including CATL.' Chinese-made ESS batteries imported into the US are reported to face a 40.9 percent tariff, which is anticipated to rise to 58.4 percent next year. Korean battery-makers have been pushing for local production of ESS cells in the US to brush off the current 10 percent tariff impact, which is set to increase to 25 percent starting Friday. Industry insiders project that the price of a Chinese LFP battery cell targeting the US market will increase from $73 last year to $87 by 2026. As of June, LG Energy Solution has secured multiple contracts exceeding 50 GWh capacity, with key US clients including Delta Electronics, Excelsior Energy Capital, Terra-Gen and Hanwha Qcells. According to market tracker Global Market Insights, the US ESS market is expected to grow at an average annual rate of 13.4 percent, reaching $305.5 billion by 2034 from $78.9 billion last year.
Yahoo
18-05-2025
- Automotive
- Yahoo
Outrage erupts as Tesla hits another roadblock on long-awaited launch — here's what you need to know
Tesla's highly anticipated Semi truck was supposed to electrify the freight industry — but growing delays and price hikes are leaving customers frustrated and competitors catching up fast. Tesla first announced the Semi, its all-electric Class 8 truck, in 2017. After multiple production delays, the company delivered a handful of trucks to PepsiCo in late 2022. But mass production still hasn't taken off, and recent updates from partners like Ryder point to further slowdowns and cost increases. Tesla has raised the price of the truck to $415,000 — a jump that makes it far less competitive with traditional diesel models, as Coaches Database observed. "The first builds of the high-volume Semi design will come late this year in 2025 and begin ramping early in 2026," Travis Axelrod, Tesla's head of investor relations, said in a January investor call, per FreightWaves. Customers are also expressing doubts about the Semi's real-world performance and long-range capabilities. Per Coaches Database, Tesla is advertising a 500-mile battery range, but the lack of widespread mega charging stations has raised concerns about how effective the truck will be for long-haul freight. These issues come as legacy manufacturers like Volvo and Freightliner roll out electric truck options with lower upfront costs or lease-based models, giving logistics companies more affordable ways to electrify their fleets. This delay doesn't just affect trucking companies — it's a setback for clean transportation. Heavy-duty trucks are a major source of pollution, and switching to electric trucks has the potential to dramatically cut harmful planet-warming gas emissions and reduce air pollution in communities near highways and freight corridors. But when electric trucks like the Tesla Semi become more expensive and less accessible, it discourages companies from transitioning away from diesel. That slows progress toward cleaner air, healthier neighborhoods, and reduced heat-trapping pollution. What's more, Tesla's pricing update and inconsistent delivery track record mirror previous issues with its Model 3 and Cybertruck launches, where delays and missed targets caused frustration among early buyers and raised doubts about the company's ability to scale. Would you ever consider buying a Tesla Cybertruck? Absolutely Never in a million years Maybe if it was way cheaper I already have one Click your choice to see results and speak your mind. Federal programs like the Inflation Reduction Act and EPA grants are helping fund electric trucks and expand charging networks. While funding for certain projects is on pause as it is reviewed by the Trump administration, states like California are mandating more zero-emission truck sales and expanding their charging sites, with others joining the Multi-State ZEV initiative to electrify freight by 2030. Companies like WattEV and Electrify America are also stepping up, partnering with logistics hubs to install commercial charging stations. While policies and partnerships are moving in the right direction, public pressure and consumer choices still matter. Supporting cleaner delivery options, choosing slower shipping, and advocating for better infrastructure in your area can push this transition forward — and ensure electric freight becomes more affordable, reliable, and accessible. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
