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Tesla Slashes L&F Battery Supply Contract by 99%

1/1/2026

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Story summary
  • Tesla, Inc. reduced its battery-material supply contract with South Korea's L&F Co. by 99%, from 3.83 trillion won to 9.73 million won.
  • The cut stems from delays to the Cybertruck and a shift in demand toward the Model 3 and Model Y.
  • Broader factors, including the removal of Inflation Reduction Act subsidies, also contributed.
  • L&F said shipments to major Korean manufacturers remain unaffected.
  • L&F's shares fell 11% in Seoul after the announcement, and they have risen 16% this year.