LG may set up an electric vehicle battery factory in both the US and Europe to supply Tesla with advanced battery cells for its new models to be launched in 2023. LG Energy Solutions, one of LG Chem’s sub-branches, is working on the production of Tesla’s new battery cell, called 4680.
LG wants to supply Tesla batteries outside of China
LG currently supplies batteries to Tesla for Model 3 and Model Y vehicles in China, while Panasonic supplies batteries for Tesla cars made in the US and Europe. Although it has not yet agreed to an agreement to provide it, the Korean company told reporters last week that it plans to set up a factory in the US to make battery cells for electric vehicles and energy storage systems. The company did not identify potential customers, but a source said it hoped Tesla would buy the batteries.
Sources stated that LG Chem made samples of the 4680, but did not go to mass production.
One of the sources stated that LG plans to produce 4680 battery cells for Tesla vehicles manufactured in the USA at the expected US plant and to supply Tesla to the Giga Berlin facility at the factory expected to be established in Spain.
Tesla announced a new 4680 battery cell development plan last September to reduce production costs, improve battery performance and increase driving range. Elon Musk said the company will continue to use batteries supplied by LG, Panasonic, Chinese CATL and other manufacturers, and will even increase the purchase, but stated that the 4680 will be used by discontinuing the use of these batteries after a certain period of time.
Musk said that Tesla has been in talks with battery suppliers about developing 4680 battery cells, Musk said.