LG Energy Solution (LGES) is gearing up to commence production of Tesla’s 4680 battery cells at its Ochang Factory in South Korea by August 2024, industry sources revealed on June 24. This milestone positions LGES as the first global battery manufacturer to mass-produce the advanced 4680 cells.
The Ochang factory is expected to achieve an initial annual production capacity of 8 GWh for 4680 cells, sufficient to power approximately 110,000 electric vehicles. LGES plans to supply these cells not only to Tesla but also to other automakers seeking to adopt the next-generation battery technology.
According to LS Securities researcher Ahn Hee-soo, Tesla’s recent announcement of producing 50 million 4680 batteries in Texas underscores the company’s rapid scale-up efforts, despite current yield challenges. He noted, “Tesla will definitely rely on LG Energy Solution and Panasonic for batteries.”
Looking forward, LG Energy Solution aims to expand its 4680 production capabilities to North America, leveraging its new facility in Arizona. Initially slated for 2170 cell production, the Arizona plant has been refocused to serve as a strategic hub for 4680 production, with an anticipated annual capacity of 27 GWh.