LG Energy Solution Invests 730 Billion KRW in Cylindrical Batteries... Likely to Supply Tesla

580 Billion KRW Invested to Establish Mass Production Facilities at Ochang Plant 2
150 Billion KRW Invested at Ochang Plant 1

[Asia Economy Reporter Moon Chaeseok] LG Energy Solution announced on the 13th that it will invest a total of 730 billion KRW in its Ochang plant in Korea to establish new and expanded production lines for cylindrical batteries.

LG Energy Solution will invest 580 billion KRW in Ochang Plant 2 to build a new form factor (4680) cylindrical battery mass production facility with a total capacity of 9 GWh (gigawatt-hours), and will also invest 150 billion KRW in Ochang Plant 1 to expand the 4 GWh cylindrical battery (2170) line. The new and expanded production lines are scheduled to begin full-scale mass production in the second half of next year.

The cylindrical batteries produced here are expected to be supplied to Tesla. Tesla plans to launch electric vehicles equipped with 4680 batteries this year.

All newly constructed production lines will fully adopt the latest smart factory-related systems such as remote support, manufacturing intelligence, and logistics automation to maximize productivity.

Through this investment, LG Energy Solution plans to secure an additional production capacity of about 13 GWh and actively expand its customer portfolio targeting automakers adopting cylindrical batteries and small electric vehicle (LEV) companies.

Kwon Young-soo, Vice Chairman and CEO of LG Energy Solution, said, "This decision was made to enhance supply responsiveness as global automakers' interest in adopting cylindrical batteries continues to increase," adding, "We will have a diversified product portfolio including pouch and cylindrical types to respond promptly to customer demands and enhance customer value."

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