Key Points:
- LG Energy Solution will commence mass production of Tesla’s 4680 batteries at its Ochang plant in Korea.
- The 4680 batteries are expected to significantly enhance energy density and output, revolutionizing the battery industry.
- LG Energy also plans to enter the production of lithium iron phosphate (LFP) batteries in the latter half of 2025.
- Discussions with General Motors regarding the joint venture, Ultium Cells LLC, and AMPC benefits are underway.
LG Energy Solution Ltd., the world’s third-largest battery maker, is gearing up to begin mass production of larger format cylindrical cells used by Tesla Inc. as early as August.
Kim Dong-myung, CEO of LG Energy Solution, announced plans to produce the revolutionary 4680 batteries at the company’s Ochang plant in Korea, aiming to meet the surging demand for next-generation battery technology. The move signifies a significant development in the global semiconductor industry.
The 4680 battery, measuring 46 millimeters in diameter and 80 mm in length, is anticipated to revolutionize the battery industry by significantly boosting energy density and output compared to conventional types. LG Energy’s foray into producing these batteries aligns with the growing adoption of the 4680 cylindrical type by major automakers like BMW, GM, and Stellantis, in addition to Tesla.
The South Korean battery giant also plans to venture into producing lithium iron phosphate (LFP) batteries; it will likely begin mass production in the second half of 2025. LFP cells, known for their stability and cost-effectiveness, are gaining traction among low-end, entry-level electric vehicle manufacturers.
LG Energy’s strategic move comes amidst heightened competition in the battery market, with rivals SK On Co. and Samsung SDI Co. also focusing on producing large-size 4680 cylindrical batteries. Samsung, in particular, is ramping up its 4680-type battery production line to cater to clients like Tesla.
In addition to its battery production expansion, LG Energy is discussing its joint venture, Ultium Cells LLC, with General Motors. The company is exploring closer cooperation with GM and addressing matters related to the advanced manufacturing production credit (AMPC) benefits received through Ultium Cells in alignment with the US government’s AMPC program.
Furthermore, LG Energy’s battery joint venture with Hyundai Motor Co. in Indonesia is set to commence operations in April. The $1.1 billion battery plant aims to secure a stable supply of battery cells for Hyundai’s electric vehicles targeting the ASEAN market, with an annual capacity of 10 GWh.
LG Energy Solution’s strategic initiatives underscore its commitment to advancing battery technology and cementing its position as a global electric vehicle ecosystem player.
