LG Energy Solution is reportedly expanding its production of cylindrical battery cells in Nanjing, China to meet Tesla's growing demand. The South Korean company is said to be preparing to launch new production lines at its Nanjing facility, with two new lines expected to come online in the second half of this year. Each production line is expected to have a capacity of approximately 2 gigawatt-hours per year, with the total capacity expected to increase to the double-digit gigawatt-hour range in the future.
The expansion is reportedly driven by the increasing demand for Tesla's electric vehicles, particularly the Model Y. The Nanjing facility is currently operating at full capacity, with a spokesperson for LG Energy Solution confirming that the growing market for cylindrical batteries is driving the company to fully utilize its existing manufacturing facilities. LG Energy Solution is a key supplier of nickel-based batteries to Tesla, with its batteries used in higher-end versions of the Tesla Model 3 and Model Y.
View Price on AmazonAccording to reports, LG Energy Solution has a total annual production capacity of around 50 gigawatt-hours for cylindrical batteries, with around 30 gigawatt-hours of that capacity currently being supplied to Tesla's Gigafactory in Shanghai. The Shanghai factory has reportedly produced over 379,000 electric vehicles in the first five months of the year, a 29% increase over the same period last year.
Source: electrive.net
