LG Ink Tesla Electric Car Battery Deal
LG Chem has reportedly inked a deal with Tesla for the supply of batteries for its Chinese-manufactured electric Model 3 and Model Y automobiles.
It follows previous exclusive agreements with Japanese giant, Panasonic, who manufactured batteries for Tesla at its Gigafactory 1 in Nevada.
According to Bloomberg and Reuters sources, LG is converting its Nanjing battery plant to manufacturer a “different type” of battery, deemed similar to those used by Tesla.
It comes after Chief Executive, Elon Musk, announced Tesla was diversifying its supply sources.
LG Chem is considered the world’s second largest manufacturer of lithium-ion batteries, with reports suggesting it’s committed to increasing market share.
The Tesla-LG agreement is reportedly limited to vehicles produced in its Gigafactory 3 near Shanghai, and follows previous exclusive agreements with Panasonic.
Tesla Model 3 production is tipped to commence at Tesla’s Shanghai plant by the end of the year, with consensus opinion suggesting non-exclusive battery deals.
Some commentators question the effect of strained US-China trade tensions on Tesla production and prices.