LG Innotek will sign a 1 trillion won supply contract with Tesla

Source: etnews

According to etnews, LG Innotek will provide Tesla with cameras worth more than 1 trillion won, and the supply contract will be completed in the first quarter and mass production will begin.

It is understood that LG Innotek's camera will be installed on Tesla's Model Y and Model 3 for the North American and European markets, as well as the upcoming electric truck Semi.

The report notes that Tesla will begin operating its first gigafactory in Austin, Texas, this month. With Tesla's fifth production site in operation, it is looking to diversify its supply of key components for electric vehicles, which the company ordered large parts before the Austin Gigafactory went into production.

Tesla previously ordered cameras from China and the United States, but due to the impact of the Sino-US trade war, it has shown great concern for South Korean companies. Last year, Tesla signed a 490 billion won camera module supply contract with Samsung Electric.

LG Innotek supplied Tesla for the first time last year, which means it passed Tesla's reliability test, but last year's supply was only tens of billions of won, and once this year's contract is completed, the transaction size will be 10 times that of last year, which will greatly benefit the company's performance.

In addition, the report pointed out that if the supply is completed within the first quarter, LG Innotek will become Tesla's core component supplier. Considering the distance from Tesla's Austin plant, production is expected to take place at LG Innotek's Mexico plant.

An executive at LG Innotek said, "We cannot confirm the availability of Tesla cameras. ”

(Proofreading/Sharon)