LG Chem will double its battery production to meet growing Tesla demand

LG Chem will double its battery production to meet growing Tesla demand

December 5, 2020 0 By autotimesnews

LG Chem will have to release more batteries for Tesla electric cars next year. The Chinese company intends to more than double its production capacity.

Tesla is not going to be satisfied with what has already been achieved and plans to increase production of its electric vehicles around the world. Suppliers of the brand will also have to work hard. So, according to Reuters, LG Chem will supply more batteries from China and Korea to Tesla plants in Germany and the United States.

To do this, at the beginning of 2020, the Chinese added production lines in South Korea. A Reuters source pointed to Tesla’s battery shortage. As a result, there is an urgent need to increase the volume of battery production, which will be dealt with by LG Chem. The battery manufacturer itself did not comment on this information regarding Tesla.

Recall that LG Chem is going to spend $ 500 million to increase its annual production capacity in 2021.

With these investments, the number of production lines will grow from eight to at least 17. In this case, the company will be able to service up to 323 thousand cars annually.