LG Energy Solution’s President, Kim Dong-myung, announced plans to start mass production of Tesla’s 4680 cylindrical batteries as early as August.
Speaking to reporters ahead of a Korea Battery Industry Association board meeting, Kim responded to queries about the production timeline, indicating a start date that could vary by a month or two but is targeted for August, reports News1.kr (via @Tslachan).
The initial production will commence at LG’s Ochang plant in Chungcheongbuk-do, with further plans to expand production to North America following the completion of a new factory in Arizona, USA.
The 4680 batteries, characterized by their 46mm diameter and 80mm height, are set to be supplied to Tesla, with LG Energy Solution also considering production at its Nanjing plant in China.
Kim discussed various strategies for diversifying their client base beyond Tesla and mentioned ongoing discussions with other potential clients. Additionally, he provided an update on the production timeline for LFP (Lithium Iron Phosphate) batteries, expecting mass production to commence in the second half of 2025.
He also touched on recent discussions with Mary Barra, CEO of General Motors, aimed at strengthening cooperation between the two companies. LG Energy Solution operates a factory in Ohio, USA, in partnership with GM and plans to start operations at a second plant in Tennessee this year, with a third factory in Michigan slated for 2025.
Regarding the Advanced Manufacturing Production Credit sharing with automakers, Kim emphasized the importance of developing a win-win strategy without delving into specifics. He remains optimistic about the battery market’s megatrend despite temporary economic fluctuations, expressing confidence in the industry’s rebound potential.
Kim also mentioned adjustments to the operation rate at LG’s Poland factory, aiming for agile and flexible management. He highlighted efforts to improve performance in energy storage systems and addressed the challenge of aligning bonus improvements with the uncertainty brought by the Inflation Reduction Act.
The Battery Association plans to ratify the succession of the association’s presidency from Kwon Young-soo, former Vice Chairman of LG Energy Solution, to Kim during its board meeting and general assembly. Kim expressed commitment to advancing the battery industry in collaboration with the government during these challenging times.