LG Chem subsidiary LG Energy Soutions is reportedly in the process of making a modification to its production line at its plant in South Korea with a view to producing 4680 type battery cells for Tesla. The 4680 cell models can offer up to 6 times more power than normal cells.
LG’s goal is to get their production line up and running before Panasonic as its Japanese rival is also preparing to launch its production of type 4680 cells for Tesla. To do this, several million euros would have to be invested by LG in its factory.
The 4680 cells were unveiled in 2020. The 4680 cells deliver 16% more battery life compared to current cells and are up to 6 times more powerful. In addition, the manufacturing process is simplified thanks to its new design, with an improved weight / power ratio and a reduction in production costs. The 2 suppliers (LG Chem and Panasonic) have, they hope, put everything into place to meet Tesla’s demands.
LG Energy Solution intends to become Tesla’s main supplier and dethrone Panasonic, which, for its part, does not want to cede its place as Tesla’s main partner. Either way, Elon Musk has made it clear that Tesla plans to buy as many cells as possible whether from LG, Panasonic or CATL. Indeed, the company will increase its purchases from its suppliers and is even encouraging them to increase their production.