South Korean lithium-ion battery cell manufacturer LG Energy Solution on Monday (06/13/2022) unveiled a 730 billion won ($568 million) investment plan to expand production of electric vehicle batteries, including the next-generation, larger 4680 type cylindrical battery. than today’s conventional batteries.
The company will disburse 581.8 billion won from June 2022 to October 2023 by adding a 9 gigawatt-hour production line to its factory in Ochang, North Chungcheong Province.
“This new line will produce cylindrical batteries with a diameter of 46 millimeters and a length of 80 millimeters from the second half of 2023,” according to the company, The Korea Herald reported.
The remaining 150 billion won will be spent on producing the conventional type 2170 cylindrical battery in Ochang, 100 kilometers south of Seoul. The plant will have an additional 4 gigawatt-hour capacity.
This is the first time that LG Energy Solution has confirmed mass production plans for a battery cell that is believed to be larger and more energy efficient than existing cylindrical battery types.
It says that Tesla wants to power the upcoming Model Y electric car using a 4680 battery.
The news comes months after LG’s Japanese rival, Panasonic, earlier this year announced plans to mass-produce 4680 batteries from April 2023.
The Ochang plant will have a combined battery production capacity of 35 gigawatt-hours by 2025. LG Energy Solution aims to secure a combined 200 batteries. Gigawatt-hour production capacity in North America, Europe and Asia combined by the end of 2022 and 520 gigawatt-hour capacity by 2025.