LG Energy Solution likely to increase battery supply for Tesla

South Korean news website The Elec reported the Tesla supply deal, citing industry sources. According to the report, LG Energy Solution is preparing to commission new production lines for cylindrical battery cells at its Chinese plant in Nanjing. Two newly installed production lines are set to become operational in the second half of this year, with additional lines to follow in subsequent phases. Each production line is expected to have an annual capacity of approximately 2 gigawatt-hours, with total capacity likely to rise into the double-digit GWh range as further investments are made.

The Elec attributes this expansion to Tesla’s rising demand for electric vehicles, particularly the Model Y. Currently, the Nanjing plant is operating at full capacity. A spokesperson for LG Energy Solution told the news site that “A growing market for cylindrical batteries is driving us to utilise our existing manufacturing facilities,” but declined to comment on specific customers. LG Energy Solution is reported to have a total annual capacity of around 50 GWh for cylindrical batteries, with approximately 30 GWh currently supplied to Tesla’s Gigafactory in Shanghai.

LG Energy Solution is a key supplier of nickel-based batteries for Tesla. The Korean company’s batteries are used in higher-specification versions of the Tesla Model 3 and Model Y, including the ‘Long Range’ variants. The Nanjing plant primarily supplies Tesla’s Shanghai factory. According to data from the China Passenger Car Association (CPCA), nearly 379,000 electric vehicles were sold from this production site in the first five months of the year—a 29% increase compared to the same period last year.

thelec.net