Tesla's 460 billion yen contract with a Korean battery manufacturer has been reduced to 1.2 million yen.

South Korean battery materials manufacturer L&F announced on December 29, 2025 that it had renewed its contract with Tesla. The contract, originally valued at $2,910,834,000 (approximately 460 billion yen), has been reduced to just $7,386 (approximately 1.2 million yen).

2023.02.28/2023.02.28
https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20230228900155

2025.12.29
https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20251229800710

L&F was founded in 2000 and initially focused on LCD backlights. In 2005, its subsidiary, L&F Materials, began handling lithium-ion battery materials. At the time of writing, the company is touted as one of the world's leading suppliers of lithium-ion battery cathode materials.

L&F signed a cathode material supply contract with Tesla worth $2,910,834,000 (approximately 460 billion yen) in 2023. However, on December 29, 2025, the company announced that it had renewed the contract and the transaction amount was $7,386 (approximately 1.2 million yen).

L&F cited 'a revision of the contract amount due to a change in supply quantity' as the reason for the contract renewal. Reutersspeculates that 'the reason is likely to be a decline in production of Tesla's 4680 battery due to a decline in demand for Tesla electric vehicles.'

On the other hand, it has been reported that Tesla's 4680 batteries have 'advanced research and development in battery manufacturing technology, making low-cost production possible using the dry cathode method.' Therefore, it is possible that the contract renewal with L&F is not due to a decline in Tesla's battery demand, but rather to changes in the manufacturing process that made the materials unnecessary.