LG Chems Plans to Double Battery Cell Production

With Tesla becoming one of LG Chem’s newest customers after working exclusively with Panasonic, the Korean chemical company is now planning to more than double its battery cell production.

Last year, Tesla called on LG Chem’s cells to support Model 3 production in China. With the addition of Tesla on top of its other customers (GM, Hyundai, etc.), LG Chem is reportedly planning on increasing its production capacity in China to support the EV giant. 

Via Reuters: “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, sources said, to keep up with its U.S. client’s growth in the biggest car market. More specifically, LG Chem confirmed that it is investing $500 million over the next year to increase its annual production capacity of 2170 cylindrical battery cells, the specific format used by Tesla in its Model 3 and Model Y, by 8 GWh at its Nanjing factory located near Tesla Gigafactory Shanghai. This increase alone could support the production of at least 100,000 Model 3 and Model Y vehicles – and more depending on the battery size mix.”

LG Chem is also planning to increase production capacity in Korea in addition to China in order to support production of Tesla vehicles in Germany and in the US (via Reuters): “The firm, a supplier for Tesla’s Shanghai-built Model 3, will also ship its increased output from China as well as Korea to Tesla’s factories in Germany and the United States, said two people with knowledge of the matter, signalling an increased role in the supply chain of the world’s leading EV manufacturer.”

The company’s Korean factory has reportedly already begun adding new production lines to support its capacity increase

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