LG Energy Solution (LGES) secured IRA-compliant (Inflation Reduction Act) battery minerals through an agreement with Tesla lithium supplier Liontown.
On July 4, 2024, LGES and Liontown signed a convertible note subscription agreement. According to the agreement, Liontown will supply LG Energy Solution with high-quality lithium spodumene from its Kathleen project. The pair will also explore the possibility of establishing a lithium refinery in the future.
“The agreement represents another significant step in our value chain investment strategy aimed at enhancing its resilience to market uncertainties. By partnering with strong players like Liontown, we will continue to secure stable supply of IRA-compliant critical minerals, fulfilling our efforts to provide competitive power solutions for electrification,” said LGES CEO David Kim.
Below are some key aspects of LGES and Liontown’s agreement.
- Liontown extends LG Energy Solution’s existing 5-year offtake agreement by an additional 10 years (15 years total). The extension will provide 700kt of spodumene concentrate over the first 5 years and 1,500kt spodumene concentrate over years 6 to 15 (in aggregate). This extension also includes a commitment to make up to 250kt spodumene concentrate available over the first 10 years (2.45Mt in total);
- Downstream collaboration agreement to commence feasibility studies to establish an IRA-compliant lithium refinery aimed at processing spodumene from Kathleen Valley into battery-grade lithium chemicals[2];
- LG Energy Solution will invest US$250 million (A$379 million[3]) through Convertible Notes. The funding will underpin the production ramp-up of Liontown’s world-class Kathleen Valley Project in Western Australia. The first production of lithium spodumene concentration from Kathleen Valley is anticipated by the end of July.
LG Energy Solution’s partnership with Liontown secures its battery supply chain in the United States as it ramps up 4680 production. Liontown also has lithium supply agreements with Tesla and Ford.
LGES is currently preparing to start 4680 production in South Korea. The company is also prioritizing the buildout of its 4680 battery assembly line in Arizona.
Battery minerals and their place of origin account for a big chunk of the IRA’s maximum credit. Critical battery minerals account for $3,750 out of the $7,500 credit. The IRA set applicable percentage goals for the value of critical minerals contained in electric vehicle (EV) batteries that automakers have to meet.
In 2023, the applicable percentage was 40%, meaning 40% of the minerals used in EV batteries must be extracted or processed in the United States, a country with a free trade agreement with the US, or recycled in North America. The IRA’s applicable percentage increases by 10% each year after 2023 until it hits 80% in 2027.
Many EVs did not qualify for the full $7,500 tax credit after battery mineral requirements were enforced. The US government has issued mineral exemptions to give automakers time to adjust their battery supply chain.
Below are the lists of EVs that qualify for the IRA’s tax credits. (Source: Internal Revenue Service)
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Elon Musk
Elon Musk estimates Tesla Semi could reach Europe next year
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” Musk said.
Tesla is preparing to expand its all-electric Semi truck program to Europe, with CEO Elon Musk indicating that the Class 8 vehicle could arrive in the region 2027.
Musk shared his update during an interview about Giga Berlin with plant manager André Thierig, which was posted on X by the official Tesla Manufacturing account.
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” he said.
Tesla has already begun limited production and customer deployments of the Tesla Semi in the United States, with the company working to scale output through the Semi factory near Giga Nevada. Considering Musk’s comments, it appears that a European rollout would be the next phase of the vehicle’s expansion beyond North America.
Musk’s use of the word “hopefully” leaves room for flexibility, but the remark signals that Europe is next in Tesla’s commercial expansion plans.
Musk has consistently argued that electrification should extend beyond passenger vehicles. During the same interview, he reiterated his view that “all ground transport should be electric,” adding that ships, and eventually aircraft, would follow.
The Semi plays a central role in that strategy. Heavy-duty freight remains one of the most emissions-intensive segments of road transport, and European regulators have increasingly pushed for lower-emission commercial fleets.
Tesla recently refreshed the Semi lineup on its official website, listing two variants: Standard and Long Range. The Standard trim offers up to 325 miles of range with an energy consumption rating of 1.7 kWh per mile, while the Long Range version provides up to 500 miles, which should be more than ample for European routes.
Elon Musk
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said.
Tesla could add the Cybercab and Optimus humanoid robot to the production lineup at Giga Berlin, as per recent comments from CEO Elon Musk.
During a recent interview with Giga Berlin plant manager André Thierig, Musk identified the Cybercab as the most likely next major product for the German factory, with Optimus potentially following after.
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said. He added that there are also “possibilities of Tesla Optimus” being produced in the facility.
Tesla has already begun production of the Cybercab in Giga Texas, with volume production expected to ramp this year. Based on Musk’s comments, it appears that if conditions align in Europe, Giga Berlin could eventually join that effort.
The CEO’s comments about Optimus coming to Gigafactory Berlin are quite unsurprising too considering that Musk has mentioned in the past that the humanoid robot will likely be Tesla’s highest volume product in the long run.
Giga Berlin will likely be able to produce mass volumes of Optimus, as the Model S and Model X lines being converted to an Optimus line in the Fremont Factory are already expected to produce 1 million units of the humanoid robot annually.
Apart from his comments about the Cybercab and Optimus, Elon Musk also confirmed that Giga Berlin has started ramping battery cell production and will continue expanding Model Y output, particularly as supervised Full Self-Driving (FSD) gains regulatory approvals in Europe.
Taken together, the remarks suggest Berlin’s role could evolve beyond vehicle assembly into a broader multi-product manufacturing hub, not just a regional Model Y plant.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Elon Musk estimates Tesla Semi could reach Europe next year
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
