Board Approves Major Investment to Fulfill 20-Year Tesla Contract
Likair's board of directors recently approved a major investment resolution, allocating $320 million to lease facilities and purchase equipment to meet the demands of a long-term supply contract with Tesla. Under the agreement, Likair will supply Tesla with at least 100,000 metric tons of lithium iron phosphate (LFP) precursor material annually for the next 20 years, with the contract set to expire in 2046. This deal not only provides Likair with a stable order pipeline but also further solidifies its strategic position in the global battery materials supply chain.
Likair is Taiwan's only manufacturer capable of mass-producing LFP battery materials outside of China, with two decades of experience in the battery materials sector. The company's products are primarily used in high-growth areas such as electric vehicles, energy storage systems (ESS), and AI data centers. LFP batteries, known for their high safety and low cost, have become one of the mainstream choices in the global energy storage market.
Tainan Government Actively Competes for New Plant, Increasing Selection Odds
To meet Tesla's order demands, Likair plans to expand its production capacity by establishing a new plant in either Tainan or Taichung, with operations expected to commence in October 2026 and revenue contributions anticipated as early as July 2027. The Tainan city government has initiated cross-departmental administrative efficiency support mechanisms to attract this investment, actively assisting Likair with site selection and subsequent construction, making Tainan the most likely location for the new facility.