Tesla is Set to Buy Batteries from the South Korean, LG Chem

Tesla

The US electric car maker Tesla is having advanced discussions with the South Korean LG to source batteries for their vehicles. They want LG Chem to source batteries for their Shanghai plant, a person known about the matter, said. Tesla pushed the source to come up with some useful components that will be helpful for the electric car maker in the future. Currently, Tesla is depending on Japan’s Panasonic batteries for its new cars.

Bloomberg reported that the California-based electric vehicle maker wants to buy batteries from LG Chem, and the report cited people who are familiar with the thing. Tesla will initially use the batteries made by the South Korean chemical company in their Model 3 cars.  And according to the report, the vehicles are about to be manufactured in a plant near Shanghai. The source also stated that LG Chem is currently expanding their China battery capacities, and along with that, they are also modifying their manufacturing facilities and planning to create a new type of auto battery. LG Chem currently produces pouch-type auto batteries and other similar classes, but for an advanced battery maker, it is not hard to make some cylindrical auto batteries that Tesla uses.

However, these talks are not public yet since Tesla is still using Panasonic batteries in their initial phase of production. And they are also in touch with other suppliers including some local names for future needs. Tesla, therefore, didn’t immediately respond to the Reuters’ request for comment and the Korean battery maker also refused to comment.

The South Korean battery maker uses supplies for their batteries from China’s Huayou and Tianqi, and they are also continuously trying to expand their business with China.

Mark Farthing
Mark was born in Portland and has lived there for most of his life, except for three years of college in New York. He has a degree in International Business and works as an account manager for a well-renowned tech firm in Portland. He's always had a knack for writing and has published several guest articles in magazines, so putting his passion for writing and technology came pretty easy to him. He is very close to his family and when he's not working, they spend their weekends either travelling or spending time together at home.

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