What is lithium iron phosphate (LFP) battery chemistry and why does it matter?

Lithium iron phosphate (LFP) is a type of battery chemistry that's becoming popular for energy storage because it's cost-effective and safer than other battery types. Tesla's shift to LFP batteries for their energy storage systems shows how this technology is gaining ground in the market.

What does 'onshoring' mean in the context of battery manufacturing?

Onshoring means bringing manufacturing back to domestic soil instead of relying on foreign suppliers. Tesla's deal with LG Energy Solution to use U.S.-based factories is an example of onshoring, which can create jobs and reduce supply chain risks.

How does Tesla's battery deal affect other companies in the supply chain?

When a major company like Tesla commits to domestic battery production, it creates demand throughout the entire supply chain. This includes companies that mine lithium, process raw materials, manufacture battery components, and build energy storage systems.

What are energy storage systems and why are they important?

Energy storage systems are large-scale batteries that store electricity for later use. They're crucial for renewable energy because they can store power from solar panels or wind turbines when the sun isn't shining or wind isn't blowing, then release it when needed.

What does 'Market Cap' mean when looking at stocks?

Market Cap (market capitalization) is the total value of a company's shares in the stock market. It's calculated by multiplying the stock price by the number of shares outstanding. It gives you an idea of how big the company is in terms of investor valuation.

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Tesla's American Battery Bet

Tesla's new multi-billion dollar deal with LG Energy Solution for U.S.-made batteries highlights a major shift in the energy storage supply chain. This creates a potential investment opportunity in American and allied companies that contribute to battery manufacturing and energy storage solutions.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 30