Source: Gasgoo
Tesla and South Korean company LG Energy are planning to sign up an agreement about the electrodes. LG Energy will support Tesla’s large-scale electric vehicle production. Currently, Tesla is preparing to further increase its internal battery production capacity.
According to reports from South Korean media, Tesla has placed an order with LG Energy for electrodes that worth 6 trillion Korean won (approximately $4.4 billion), and that is enough for 1.3 to 1.4 million electric vehicles. The report suggest that while Tesla has placed the order, the final details of the contract are still under discussion.
An insider revealed, “Tesla’s procurement team recently ordered electrodes worth 6 trillion Korean won from LG, and both sides are currently engaged in detailed discussions. The final contract expected to be signed in the second half of the year.”
Image source: Tesla
This figure represents around 70% of Tesla’s production in 2023 (over 1.8 million vehicles), indicating that Tesla is preparing for large-scale in-house production of electric vehicle batteries.
The insider added, “The supply is expected to start next year and last for 6 to 7 years, which aligns with the model refresh cycle of Tesla. This means Tesla will produce battery cells in-house by procuring electrodes. Internal battery production at Tesla has already begun.”
Kim Dong-myeong, CEO of LG Energy Solution, confirmed that the company would begin producing Tesla’s latest generation 4680 battery cells, which are crucial for the Cybertruck. These cells are produced at LG Energy Solution’s Ochang plant in North Chungcheong Province. LG Energy Solution will also establish a new plant in Arizona later this year.
Progress has also been made on Tesla’s construction of its lithium refining plant in Robstown, which is expected to ultimately produce 50 GWh of battery-grade lithium per year.
