Last updated on December 8th, 2022 at 02:28 pm
Tesla is interested in buying a stake in LG’s battery division
In July, LG Chem managed to become the largest manufacturer of traction batteries for electric vehicles in the world, now the Korean manufacturer intends to spin the business out of its structure. According to Korean media reports, Tesla is interested in the possibility of purchasing a 10% stake in the newly created LG Energy Solution.
The Korea Times reported this on Monday, citing informed sources in the banking sector. The US electric vehicle maker will be able to secure the stable supply of traction batteries it desperately needs amid growing ambitions to ramp up production. Tesla’s own initiatives to improve traction batteries will not immediately bear fruit, so the company will depend on third-party suppliers for a long time.
It is difficult to assess to what extent Tesla’s participation in LG Energy Solution will allow the companies to strengthen cooperation in the development of new types of batteries. The American manufacturer of electric vehicles has experience of cooperation with Panasonic, partners jointly produce battery cells in the USA. Another major Tesla partner is the Chinese company CATL, which supplies batteries to electric vehicles assembled locally from the assembly line in Shanghai. Diversifying battery supply sources allows Tesla to maintain flexible pricing.
