LG Hopes to Make Battery Cells for Tesla in the U.S. or Europe by 2023

LG Energy Solutions is planning to build advanced battery cells for Tesla as soon as 2023, and is considering production sites in the United States and Europe, according to two people familiar with the matter (via NASDAQ).

While Tesla has yet to agree to a deal that would expand LG’s role in the company supply chain beyond its current production setup for the company in China, just last week the Korean battery maker told reporters that it plans to build a US factory where it would make EV battery cells and other energy storage systems.

While the company did not identify specific customers, one of the sources did say it was hoping Tesla would buy the batteries.

LG hopes to make new battery cells for Tesla in 2023, report says – SAN FRANCISCO — LG Energy Solution aims to build advanced battery cells for Tesla Inc. EVs in 2023 and is considering potential production sites in the U.S. and Europe, two people familiar with the matter tol… pic.twitter.com/9oYpYjUXaS

— Paul Richardson (@ValleyTuning) March 10, 2021

In September, at Tesla’s Battery Day event, CEO Elon Musk shared an ambitious plan to develop new 4680 battery cells, which would inevitably include companies like Panasonic and LG, which the company already uses as suppliers for some of its goods.

One of the sources said, “LG plans to produce 4680 cells at its new U.S. factory. They plan to build a new 4680 cell line to supply Tesla’s Giga Berlin in Europe.” The source also included that Spain was among potential locations for a European battery plant.

While LG has begun making samples of the 4680 cell, according to the sources, the company still faces the challenge of scaling up production for a global market. With demand for electric cars and EV battery cells higher than ever, Tesla hopes the new 4680 cells can help reduce costs and improve performance within a few short years.