LG Chem to Supply Batteries for Tesla Model Y in China

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Tesla has been working closely with LG Chem Ltd, even expressing interest in owning a small portion of the company’s stake. As LG Chem Ltd, and other companies, to be sure, provide the battery supply needs to electric vehicle (EV) companies moving forward, it will be interesting to see which batteries land where.

On Sunday, it was reported that Tesla had landed on using LG Chem’s batteries to supply it’s made-in-China Model Y, as shared by Tesmanian (use coupon TESLANORTH10 to save 10% off floor mats and more).

Additionally, LG Chem will be the Model Y’s only battery supplier for the time being, securing a major deal for LG Chem.

In the meantime, Tesla has begun building its Terafactory Texas plant, which will be at the same site as its EV production facility, Gigafactory Austin. In the next several years, however, the EV company will build out Terafactory Texas to both mine its own lithium and, thus, produce its own batteries.

Until then, at the very least, Tesla has contracts to continue working with companies like LG Chem, Panasonic, and others for its battery supply needs – and even once it builds its own, it still may not be enough to meet demand and may require ongoing supply help from companies such as these.

As the world accelerates forward towards sustainable transportation, the auto supply chain is already rapidly changing shape – and between new power wielded by Tesla and its suppliers, and legislative transitions to zero-emissions, the change may even spell trouble for traditional auto brands in the near future.

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