Tesla in talks with LG Chem on batteries supplies in China

Aug 23, 2019 – US electric car manufacturer Tesla is in talks with South Korean LG Chem to supply EV batteries that are to be manufactured at a factory in Shanghai, Reuters reported, citing a source familiar with the situation.

This move is Tesla’s attempt to diversify the sources of the key component for its electric vehicles, now exclusively supplied by Panasonic.

Another source said that LG Chem agreed to supply batteries for the Chinese Tesla plant, without specifying details. According to the first source, LG Chem is expanding its production capacities in China and modifying some manufacturing facilities in Nanjing to the production of the type of car battery that Tesla uses.

According to the source, Tesla will continue to use Panasonic batteries at the initial stage of production, and then diversify supplies.

According to another source, Tesla may begin to purchase CATL batteries after some time, although so far this Chinese manufacturer does not have much experience in making cylindrical batteries used by Tesla.