LG Innotek has confirmed that it is in talks with Tesla for a ₩1 trillion deal to supply camera modules. This confirms the rumor that appeared earlier this year.
In an official statement from LG Innotek on August 25, it is said that the company is in talks with Tesla about the supply of camera modules, reported Business Korea. The manufacturer confirmed the rumor, which appeared in January 2022, but indicated that the final contract had not been signed. At the moment, the supply of camera modules worth ₩1 trillion, which is about $750 million, is being discussed. If the deal is finalized, LG Innotek will supply the camera modules to Tesla's Gigafactory Texas, the sources said.
“We plan to make another disclosure about the matter when specific details are finalized or within one month,” LG Innotek added.
On January 13, 2022, a Korean publication reported that LG Innotek is preparing to supply camera modules and some other parts for Tesla. The cameras will be installed on Tesla Model Y and Model 3 for the North American and European markets, as well as on Cybertruck. The supply contract was being prepared for signing in Q1 2022. Although the deadlines did not match, the information about a major contract turned out to be true.
In 2021, LG Innotek supplied several camera modules for Tesla for the first time and thus passed the equipment test. Now the company is registered as an official supplier of Tesla parts. Manufacturing is expected to take place at LG Innotek's Mexico plant, given its relative proximity to Giga Texas.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.