LG hopes to launch batteries for Tesla electric vehicles in the US or Europe in 2023

Citing two anonymous whistleblowers familiar with the matter, Reuters reported that LG Energy Solution expects to begin producing leading-edge batteries for Tesla’s electric vehicles in 2023. The South Korean manufacturer is already exploring potential manufacturing sites in the US and Europe. However, according to one of the sources, an agreement between Tesla and LG has not yet been reached.

The battery maker told South Korean reporters last week that it plans to build a plant in the US to manufacture battery cells for electric vehicles and energy storage systems to serve customers in the US and around the world. Who LG considers potential customers was not said at the time.

In September, Tesla CEO Elon Musk announced a plan to develop new cells in-house, prompting suppliers such as LG and Panasonic to take up new technology more aggressively so as not to lose a major customer in the long run.

LG is said to have samples of the so-called large-format cylindrical cells 4680 ready. However, according to informants, the company is facing technological barriers and the problem of increasing production. One said LG has yet to receive orders from Tesla for 4680 cells, which are in development. So far, Tesla is rapidly ramping up orders for 2170 cells used in Model 3 and Model Y electric vehicles assembled in China.

The move to 4680 cells is intended to reduce manufacturing costs, improve battery performance and extend range.

Panasonic, a longtime supplier of batteries for Tesla’s electric vehicles, plans to launch a test line to produce 4680 cells in Japan during the next fiscal year, which begins April 1.