Tesla Officially Recognizes 'LG Chem Electric Vehicle Battery'

[Asia Economy Reporter Park So-yeon] LG Chem will supply electric vehicle batteries to the American electric car company Tesla.

According to foreign media and the battery industry on the 30th (local time), Tesla has agreed to sign a partnership with LG Chem for the supply of electric vehicle batteries. Although it has long been assumed in the industry that LG Chem would break Panasonic and Tesla's battery monopoly and supply batteries, this is the first time Tesla has officially confirmed it.

Tesla is expected to receive cylindrical batteries from LG Chem at its electric vehicle factory in Shanghai, China. To this end, LG Chem reportedly made an additional investment of about 600 billion KRW last year in its small battery factory in Nanjing, China, expanding its cylindrical battery production capacity to supply about 500,000 electric vehicles. Unlike other automakers, Tesla produces electric vehicles equipped with thousands of cylindrical batteries rather than pouch-type batteries.

Tesla is the global leader in electric vehicle market share. Last year alone, it sold more than 250,000 electric vehicles, maintaining the number one market share (16%). Tesla, which recorded profits for two consecutive quarters last year, confidently stated, "Vehicle deliveries will exceed 500,000 units this year." There is anticipation that LG Chem's brand value and battery division performance will rise together through full-scale cooperation with Tesla.

Recently, LG Chem has shown remarkable growth in the battery sector as a partner not only of Tesla but also of major global automakers. Representative companies include Hyundai and Kia Motors, General Motors (GM), Ford, Chrysler, Volkswagen, Audi, Mercedes-Benz, Renault, and Jaguar. LG Chem's batteries are installed in 13 of the top 20 global automobile companies.

It is also evaluated that LG Chem has already surpassed the status of a simple parts supplier. By consecutively establishing joint ventures with major automakers, it is playing a central role in the electric vehicle ecosystem. LG Chem has decided to build an electric vehicle battery factory in the United States with GM, the number one automaker in the U.S., investing 2.7 trillion KRW, and has also agreed to establish a battery joint venture with Geely Automobile, the number one automaker in China. It is also reported that discussions are underway to establish a joint venture with Hyundai Motor, a domestic automaker.

LG Chem's electric vehicle battery production capacity is expected to surge from 70 GWh last year to 100 GWh this year and 200 GWh in 2023. Battery division sales are also projected to grow about threefold from 9 trillion KRW last year to 30 trillion KRW in 2024. LG Chem's current backlog of electric vehicle battery orders stands at 150 trillion KRW.

This content was produced with the assistance of AI translation services.