LG Chem To Double China Battery Capacity To Meet Tesla Demand Says Sources: Report

- Advertisement -
  • The report added that the firm, a supplier for Tesla’s Shanghai-built Model 3, will also ship its increased output from China and Korea to Tesla’s factories in Germany and the United States
  • An LG Chem spokesman said that the company is continuing to expand capacity for cylindrical battery cells in response to growing demand from automakers but they can’t comment on specific customers

As per a report by Reuters, sources said that in order to keep up with its U.S. client’s growth in the biggest car market, South Korea’s LG Chem Ltd plans to more than double production capacity of battery cells it makes in China for Tesla Inc electric vehicles (EV) next year. The report added that the firm, a supplier for Tesla’s Shanghai-built Model 3, will also ship its increased output from China and Korea to Tesla’s factories in Germany and the United States as per two people with knowledge of the matter.

The report added that LG Chem has already added production lines in South Korea this year primarily mainly to meet demand from Tesla’s U.S. plant as per the people. The automaker has asked Japan’s Panasonic Corp to also supply its Shanghai factory as per one of the people, who declined to be identified as the matter was confidential. The report added that the person said that Tesla simply doesn’t have enough battery cells. So LG Chem is going to more than double China output.

Expand capacity for cylindrical battery cells

- Advertisement -

The report added that an LG Chem spokesman said that the company is continuing to expand capacity for cylindrical battery cells in response to growing demand from automakers but they can’t comment on specific customers. As per the report, LG Chem, whose battery cell business became an independent unit, in October said it would triple capacity of cylindrical cells to 60 gigawatt hours by 2023, without naming Tesla or disclosing other details. The report said that Tesla was not immediately available for comment and Panasonic declined to comment.

The report added that the local government said last week, without disclosing current capacity LG Chem will invest $500 million over the next year to raise annual production capacity of 21700 cylindrical battery cells – a type used by Tesla – at its Nanjing plant by 8 GWh. The two people told Reuters the plan involved increasing the number of production lines to at least 17 from eight.

The report added that LG Chem with CATL, supplies battery cells for Tesla’s Model 3 sedan built in Shanghai, where production began last year and whose current annual capacity is 250,000 cars. The Morningstar previously reported that Tesla aims to start making its Model Y sport-utility vehicle at the plant next year, for which capacity will reach 250,000 by 2022.

The report added that one of the people said that initially, , LG Chem will be the sole supplier for Shanghai-built Model Y cars. CATL was not immediately available for comment. The person said that LG Chem’s China factory will also initially supply battery cells for Tesla vehicles in Berlin when production there begins. It needs permission should if it wants to make its own cells locally.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

5G Chipset Market to Hit $92.09B by 2030

0
Reports indicate that the global next-gen wireless processor market is on track to surpass the $100 billion mark in the coming decade. The 5G chipset...
Gursaurabh Singh, Founder of Dhruv Vidyut

“Electrifying Rural Mobility- Converting Traditional Bicycles Into E-Bikes”

0
In a conversation with Nitisha Dubey from EFY, Gursaurabh Singh, the Founder of Dhruv Vidyut, discusses their conversion kit, which can transform any conventional...
Rahul Bollini, the Founder of Bollini Energy

“Formal Contracts For Long-Term Commitments Are Not Always Necessary”

0
Bollini Energy collaborates with various companies interested in understanding the complete value chain of Lithium-ion cells. They offer technical services that span from mining...

Buzz

FAME 3 Likely To Launch On Budget Day With INR 10k Cr Budget

0
People familiar with the discussions informed that the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme is likely to include support for electric...

Dixon Technologies Plans Multi-Million Dollar Investment In India

0
The domestic electronics manufacturer has planned 1500-1800 crores INR investment, seeks to venture into new sectors.  Dixon Technologies, a producer of e-components, recently disclosed its...

Clean Mobility Establishes Pune Facility For Zbee

0
Clean Mobility Solution India Pvt. Ltd. establishes a manufacturing facility in Pune to localise and indigenously produce the 'Made in India' Zbee, a three-wheeled...

Important Sectors

Setting UP Plant For Motors That Deliver 97% Efficiency

0
What can four students competing in Formula Student race teams achieve? Why would these students, originally focused on developing an electric two-wheeler brand, pivot...

FAME 3 Likely To Launch On Budget Day With INR 10k Cr Budget

0
People familiar with the discussions informed that the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme is likely to include support for electric...

Dixon Technologies Plans Multi-Million Dollar Investment In India

0
The domestic electronics manufacturer has planned 1500-1800 crores INR investment, seeks to venture into new sectors.  Dixon Technologies, a producer of e-components, recently disclosed its...

Clean Mobility Establishes Pune Facility For Zbee

0
Clean Mobility Solution India Pvt. Ltd. establishes a manufacturing facility in Pune to localise and indigenously produce the 'Made in India' Zbee, a three-wheeled...

VinFast Invests $2 Billion In India Expansion

0
Vietnamese electric carmaker VinFast expands across Asia, opening new factories in India and Indonesia, despite challenges in the competitive EV market and slowing global...

Manufacturing

Honeywell Creates AI Software For Gigafactory Efficiency

0
Honeywell anticipates that its new battery manufacturing excellence platform will lower the costs of cell production, speed up the ramp-up cycles, and decrease material...

Raju B Ketkale Named CEO Of Lumax Industries

0
He takes over from Vishnu Johri, who is stepping down for personal reasons. Lumax Industries Limited, a Tier-1 automotive lighting system and component manufacturer within...

Schaeffler And Symbio JV Innoplate Starts Fuel Cell Plate Production

0
Starting with an initial production capacity of 4 million bipolar plates, the Innoplate joint venture is projected to achieve an annual output of 50...

Tesla Pushes Suppliers To Source Parts Beyond Taiwan And China

0
China and Taiwan are major global producers of essential electronics parts and components. Tesla has requested that its suppliers move the production of components and...

Uno Minda Shines With Increased Content Per Car And EV Focus

0
Uno Minda, a key player in the auto parts industry, has demonstrated significant revenue growth, surpassing industry averages by more than double over the...