On May 17th, according to Thelec, LG New Energy, a South Korean battery manufacturer, has formed a new team dedicated to developing the 4680 battery widely used by Tesla.
LG New Energy is a new company that was spun off from LG Chem in December 2020, specializing in battery business with customers including Tesla, General Motors, and Volkswagen. After the spin-off, LG Chem will hold 100% of the equity in this new company.
According to sources, a new team formed by LG Energy Solution is led by Vice President Ryu Deok-hyun and has approximately 200 employees. In addition to developing 4680 batteries, the team is also developing 4695 batteries.
4680 battery is a new type of battery developed by Tesla. The diameter of this battery is 46mm and the length is 80mm. The power output has increased by 6 times, the range has increased by 16%, and the cost per kilowatt-hour has decreased by 14%.
Although Tesla is currently producing 4680 batteries in its factories in Fremont, California and Austin, Texas, the production volume is small. Although Tesla can produce 4680 batteries on its own, it also relies on partners to help meet demand.
In February 2021, it was reported that LG Energy Solution had started building a Tesla 4680 battery pilot production line. At the same time, Tesla’s main partner, Panasonic, is preparing a pilot production line for Tesla at its Suminoe factory in Osaka.
In January of this year, LG Energy Solution stated that it plans to proceed with its plan to build a factory in Arizona as planned, and is negotiating with manufacturers such as Tesla to supply batteries from its Arizona factory.
In March of this year, it was reported that the company plans to invest KRW 7.2 trillion to build a new battery factory in Arizona. The factory will start construction this year and be completed in 2025. The company stated that once completed, the factory’s annual production capacity will reach 43GWh, making it the largest single battery production factory in North America.
