The South Korean company is already supplying its batteries to Tesla in China, but plans to expand beyond that market. LG recently told Korean reporters that it wants to build a plant in the United States to make battery cells for electric vehicles and energy storage systems in the hopes that Tesla will be on its customer list.
In September 2020, Elon Musk unveiled the new 4680 wide-format cylindrical cells, which the automaker intends to use in its future models. Tesla plans to manufacture these cells in factories in Texas and Germany as it strives to reduce manufacturing costs, improve battery performance and extend the range of its electric vehicles.
LG began to create its own 4680 sample cells, but faced technological barriers and challenges in expanding production. The Korean company has yet to sign a contract with Tesla to supply 4680 batteries, but Musk recently confirmed that Tesla is in talks with suppliers to develop new batteries. Another battery supplier for Tesla, Panasonic, is also planning to launch a test line for 4680 cells in Japan later this year.
LG currently not only supplies Tesla batteries to China, but also has a $ 2.3 billion stake in a joint venture with General Motors in Lordstown, Ohio that will produce batteries for electric vehicles. GM and LG are also considering setting up a second battery plant in the US.