Featured image: tesla-club.ru
LG will begin producing batteries for Tesla later this year at its Korean plant, due to increased demand for the company's electric vehicles.
On July 3, Reuters announced that South Korean LG Chem plans to start producing batteries for Tesla cars at its domestic plant this year after the auto manufacturer raised orders to cope with demand.
“Tesla is asking not only LG Chem but other suppliers to increase supplies, as its cars are selling well,” the person told Reuters. Another source also said LG Chem is converting some of its production in South Korea to produce batteries for Tesla.
This news came right after Tesla changed plans for its Giga Berlin, which will no longer produce batteries. Nevertheless, the factory will produce cars for the European market that will need batteries, so it is quite natural that a supplier is needed. The information on Tesla’s agreement with the Korean LG Chem gives us some idea of where the batteries for the cars made there might come from.
The batteries from the Korean factory will most likely not be for Tesla's electric vehicles made in China. After all, in addition to LG Chem, the California company already has an agreement with other companies in the country. And, if the batteries are not manufactured in China, then delivering them to the country, Tesla will need to pay a customs duty for them, which is unreasonable. It was the desire to avoid the additional financial waste that made the company sign agreements with local suppliers. In the US, the company already has a battery supplier.
Tesla Plans to Spend About €1 Billion For The Construction Of Giga Berlin https://t.co/qBJNHEdrjz pic.twitter.com/HRPWYbOTug— Tesmanian.com (@Tesmanian_com) July 2, 2020
Given this information, it can be assumed that the South Korean LG Chem batteries will be produced for another market, most likely European. According to the plan, after full expansion, Giga Berlin will produce 500,000 cars a year.
At the moment, this information is a rumor, and neither Tesla nor LG did not confirm it.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.