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Tesla in Discussion with LG Chem for Batteries

Auto News - Published on Mon, 26 Aug 2019

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Tesla is reported to be in an advanced stage of talks with South Korea’s LG Chem to use batteries other than Panasonic’s for the electric vehicles it would be manufacturing at its Chinese factory in Shanghai. Initially, Tesla plans to use LG Chem’s batteries for the Model 3s that it will be making at the Shanghai factory. The talks for battery supply with LG Chem are seen as a move toward diversifying its suppliers as Panasonic is currently its exclusive battery cells supplier.

As early as in November last year, Elon Musk said that Tesla would likely source battery cells from several suppliers for its Chinese production. Replying to a question on Twitter if Panasonic would be the battery partner for the Shanghai Gigafactory, Mr Musk said on November 2, 2018 that “Tesla will manufacture all battery modules & packs at China Giga, as we do today in California & Nevada. Cell production will be sourced locally, most likely from several companies (incl Pana), in order to meet demand in a timely manner.”

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Posted By : Mohan Sharma on Mon, 26 Aug 2019
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