Samsung’s Korean stock (ticker: KR:005930) was up nearly 7% Monday on the news. The deal is an opportunity to prove that the woes of the past few years are in the rearview mirror.

TeslaTSLA stock advanced higher at Monday's stock market open after CEO Elon Musk confirmed late Sunday that the EV giant has signed a $16.5 billion, multiyear, deal with Samsung for AI chips. Musk claimed that the initial price tag on the deal is just the beginning.

Electric vehicle costs in the US could drop by $6,000 or more. Ford, GM, and Tesla have all invested heavily in LFP battery production in the US, partnering with LG, Samsung, and in the case of Ford, using tech from Chinese battery giant CATL. Stellantis has also partnered with CATL to build an LFP factory in Spain.