LG Energy Solution (Formerly: LG Chem) Fights Tesla to Become Major Supplier of Lithium-Ion Batteries
South Korean website ET News reports that LG Energy Solution will increase production of 2170 cells in Nanjing, China to cover China-made Model 3 and Model Y, which will begin production in the first half of 2021. The company was reportedly the [sole?] Supplier of parts for Tesla's electric crossover.
Panasonic has bright future ahead of China without access to China LG Chem
In November 2020, it became known that the Chinese Tesla plant in Shanghai plans to abandon the factories in Fremont (California, USA) in 2021. It will hit 550 cars annually, while the American factories plan to produce 500 XNUMX cars annually. We then assumed that such growth would lead to the development of China's CATL and South Korea's LG Chem (now: LG Energy Solution), which are the only suppliers of cells for cars made in China.
Our predictions are starting to come true. LG Chem is already supplying elements for the Tesla Model 3 Long Range and Performance, and will also produce them for the Tesla Model Y next year. 21700 cells with nickel-manganese-cobalt ([Li-] NCM) cathodeswhile in the USA Panasonic [Li-] NCA elements are used. ET News claims that LG Energy Solution has achieved in them energy density 0,2571 kWh / kg (a source).
To meet this challenge, the South Korean company plans to invest $ 500 million (equivalent to PLN 1,85 billion) to expand the production line in Nanjing to increase processing capacity up to 8 GWh cells per year... Therefore, only Chinese factories have to supply elements for the needs of approximately 100 Tesla Model 3 / Y LR or Performance. The rest will need to be shipped from South Korea or use CATL products.
If the Chinese Tesla plant really reaches the level of production of 550 40 cars per year, then for cars produced in China, a total of about XNUMX GWh of cells will be required. By comparison, Panasonic is currently expanding production lines in the US to reach XNUMX+ GWh of cells per year. Thus, the Chinese cake will be larger, and most of it will be owned by LG Energy Solution.
> Tesla Model 3 SR + from China - “perfect”, better than the American one, with matrix LEDs [video]
Kick start: Illustrative cell line at Gigafactory, Nevada (c) Panasonic / Tesla
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