Tesla and LG negotiate production of 4680 battery cells in new plant

Tesla and LG Energy Solutions are in talks to produce the automaker’s new 4680 battery cell in a brand new plant, potentially in Europe or the United States.

LG became one of Tesla’s official battery partners when it started supplying battery cells for the Model 3 vehicles it produced in China.

It became only the second battery manufacturer, after Panasonic, to have its cells validated for use in Tesla vehicles.

Since Tesla unveiled its own new internally designed battery cell, the 4680, LG has been talking about expanding its role as a supplier to the electric carmaker.

Last month, we reported on LG’s construction of a new pilot production line at a factory in Korea to produce the new Tesla battery cell.

Now Reuters reports in an exclusive that LG is planning to build Tesla’s new battery cell in a new plant that will be in the United States or Europe:

“LG plans to produce 4680 cells at its new plant in the United States. They plan to build a new line of 4680 cells to supply Tesla’s Giga Berlin in Europe, ”said one of the sources, adding that Spain is one of the [the] candidates for the European factory.

LG has never produced such a large cylindrical battery cell, but Tesla has developed a new design and manufacturing techniques that allow for a 46 mm by 80 mm cell.

Reuters sources said Tesla has not yet placed an order for the 4680 battery cell with LG:

“He said that LG has still not been able to get Tesla orders for 4680 cells, which are still in development. For now, Tesla is dramatically increasing orders for 2170 cells used in China-made Model 3 and Model Y vehicles, the source said. “

The production of 4680 battery cells in a new LG factory for Tesla would take place in 2023, according to the report.

Tesla has indicated that it plans to produce the 4680 battery cell itself in its own factories, but the automaker still plans to buy battery cells from suppliers, and it has even discussed getting suppliers to produce its new internally designed battery cell.

Panasonic has also been discussing the construction of Tesla’s 4680 battery cell.

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