LG Energy is set to invest $451 million in the mass production of Tesla 4680 battery cells. The manufacturer plans to start mass production of the new cells next year.
LG Energy Solution Ltd. announced on Monday that it will invest 580 billion won ($451 million) to produce battery cells for Tesla. With the new investment, the company plans to add 9 gigawatt-hours (GWh) worth of production capacity for the new 4680 cylindrical batteries at its #2 Ochang factory. Mass production will start in 2023. LG's 4680 battery cells are composed of nickel, cobalt, manganese, and aluminum (NCMA). The new battery has an increased nickel composition of up to 95% and added aluminum.
“We have decided on the investment to increase our production capabilities on the back of global automakers’ rising interest in cylindrical batteries,” Kwon Yong-soo, vice chairman and CEO of LG Energy Solution said.
The new 4680 battery cell is considered the most advanced version of the battery cell used in electric vehicles today. The larger battery has five times the energy density and six times the output of the 2170 counterpart. The range of an electric vehicle using 4680 battery cells will increase on average by 16%.
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