South Korea's Samsung SDI said on Tuesday it is in talks to supply energy storage batteries to Tesla in an order that Korean media said could be worth more than 3 trillion won ($2.11 billion).

Samsung SDI shares soared more than 8% on the news.

A deal would mark the latest push by Tesla to reduce reliance on China for key parts, fueled by tariffs and geopolitical tensions.

Tesla has signed deals with South Korean companies Samsung Electronics and LG Energy Solution to source chips and batteries in recent months.

Energy storage batteries have a similar chemistry to automotive batteries and are used to power facilities such as data centers.

South Korean battery makers are repurposing electric vehicle battery production lines to also produce energy storage systems as they are hit by the

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