4680 Battery
Tesla-L&F battery contract cut 99% to $6,800 amid Cybertruck struggles and 4680 setbacks
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Tesla has slashed its supply deal with South Korean firm L&F Co. by nearly 99%, from $2.9 billion to $6,800, for high-nickel cathode materials used in the struggling 4680 battery cells of the Cybertruck. The revision, filed December 29, 2025, reflects weak demand, production issues, and EV market shifts, impacting L&F's stock and highlighting broader challenges for Tesla's battery ambitions.
Following recent supply chain adjustments like L&F's contract reduction, Tesla has slashed its 4680 battery cathode deal with LG Energy Solutions from $2.9 billion to $7,000, per Reuters. Weak Cybertruck demand undermines the cell's high-volume economics, threatening plans for Texas Gigafactory output and the upcoming Cybercab.