LG says Planning to Make Tesla New Battery Cells in US or Europe by 2023

LG says Planning to Make Tesla New Battery Cells in the US or Europe by 2023

Tesla has not yet agreed to an agreement that will increase LG’s role in its supply beyond China, according to a source.

LG Energy Solution aims to build advanced battery cells for Tesla’s electric vehicles by 2023 and is looking at potential production facilities in the United States and Europe, two people familiar with the matter told Reuters.

Tesla has not yet agreed to an agreement that will increase LG’s role in its sales beyond China, one source said.

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Last week, a Korean battery maker told Korean journalists that he plans to build a US factory where it will make battery cells for EVs and power storage systems, catering to the US and international customers and get started. It did not specify potential buyers at the time, but one source said he hoped Tesla would buy the batteries.

In September, Tesla Chief Executive Officer Elon Musk announced a plan to build new cells internally, enabling providers such as LG and Panasonic to adopt unauthorized technologies or face the risk of losing a large customer for a long time.

The Korean supplier, a unit of LG Chem, made samples of the so-called 4680 cell-cylindrical cells, sources said, requesting anonymity. It faces technical challenges and the challenge of growing productivity, say people familiar with the issue.

“LG plans to produce 4680 cells in its new US factory. They are planning to build a new 4680 supply line for Tesla’s Giga Berlin in Europe,” said one source, adding that Spain was one of the participants in the European plant.

One source said that LG had never produced large quantities of cylindrical cells in such large formats, although increasing battery capacity is a real call. “Tesla is a big customer, and LG could put itself at risk,” said one source.

He said LG had not yet received orders from Tesla for 4680 cells, which were still under construction. At the moment, Tesla is significantly increasing the 2170 cell orders used in Model 3 and Model Y vehicles made in China, the source said.

LG declined to comment, and Tesla officials could not be reached for comment.

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Tesla’s September plan to make 4680 new battery cells aims to reduce production costs, improve battery performance and increase driving range. This will help Tesla continue to increase the production of the world’s largest electric vehicles.

Tesla operates a pilot factory for new battery cells in California and is preparing to build those cells on new plants in Texas and Germany.

Musk said Tesla had recently been in talks with battery suppliers about building 4680 batteries. He said Tesla would use existing cells for at least a few years, but would “take” those cells over time.

LG currently supplies small cells to Tesla in China, as does Chinese battery maker CATL. Panasonic has partnered with $ 5 billion with Tesla (approximately Rs. 36,490 crores) in a “gigafactory” battery near Reno, Nevada.

LG currently owns a combined $ 2.3 billion business (approximately Rs. 16,790 crores) in partnership with General Motors Co in Lordstown, Ohio, to manufacture batteries for GM’s future electric car chargers.

GM says they are separately considering building a second American battery factory with LG.

Unusual and unusual comments from LG and GM came after another Korean battery supplier, SK Innovation, hoping the White House would overturn a recent U.S. commercial decision in favor of LG, said it threatened to disrupt the supply of battery to Ford Motor and Volkswagen.

Tesla rival Lucid Motors, who has a long-term supply agreement with LG Chem, and is considering whether to make his own cells in the house, said he was interested in a variety of cell types, Chief Executive Officer Peter Rawlinson told Reuters.

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Panasonic plans to launch a 4680 cell test line in Japan for the business year starting April 1, according to someone familiar with the matter. The two companies have not yet said whether they plan to work together to produce 4680 cells.

Tesla may need to set a deadline for mass production, or work with partners in its new plants to quickly produce cells, said Caspar Rawles, research analyst Benchmark Mineral Intelligence.

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