South Korean battery giant LG Energy Solution (LGES) is preparing to finally start the production of new 4680-type cylindrical format electric vehicle batteries “soon.”
Announcement details
LG Energy Solution CEO Kim Dong-Myung officially announced plans to begin the production of the 4680-type battery cells as early as August 2024, local media Naver reports.
“We will do it soon. I think it will be that much, but [the timing] will come and go for a month or two.”
LGES CEO Kim Dong-Myung said before attending the Korea Battery Association Board of Directors meeting on Thursday
The series production will transpire at the South Korean company’s Ochang facility in its home country. However, it also has plans to manufacture the cutting-edge battery tech in the US at its currently under-development Arizona factory by around 2025.
The potential production in the US market will be crucial for LGES and Tesla to benefit from the Inflation Reduction Act’s federal tax credits of up to $7,500 per eligible vehicle, along with other available incentives for domestic manufacturing.
Moreover, it also apparently plans to start mass production of the new battery in its Nanjing facility in China.
About 4680 batteries
Tesla pioneered the 4680-type battery technology, which features 46 mm diameter and 80 mm height. It handles the innovative batteries’ production at its Californian pilot facility and the Gigafactory Texas.
Considering the production complexity, Tesla urged its battery partner, LGES, to also manufacture 4680-type cells.
It delivers enhanced energy density and lower production cost per energy unit, owing to its bigger form quality. It also paves the way for a more streamlined battery pack, indicating fewer individual cells to link and control.
However, the size increase also poses several challenges that may affect quality and production reliability.
Tesla’s production progress
As of now, Tesla is only the only electric automaker to employ its self-developed 4680-type battery cells.
It first arrived in one of the Tesla Model Y variants from Giga Texas, and is now in the new Cybertruck.
Tesla has significantly progressed in its 4680 production efforts. In fact, it already crossed the 20 millionth 4680 battery cell production milestone at Giga Texas in October last year.
CEO Elon Musk also noted during the Q4 and Full Year 2023 Earnings Call that this year would mark the EV giant’s tremendous 4680 production ramp-up.
“But we also do want to emphasize that we also expect to ramp orders from our suppliers. So, this is not about replacing our suppliers. It’s about supplementing our suppliers.”
Tesla CEO Elon Musk
Apart from Tesla, LGES is also currently scouting for more prospective clients for its new 4680 battery supply. The imminent wider availability of the cutting-edge 4680 battery cell will undoubtedly pave the way for more energy-dense but affordable electric vehicle batteries, potentially boosting the global uptake of e-mobility.
