As Tesla is set to unveil its second generation home battery pack, the Powerwall, on Friday, LG Chem announced today that it is bringing its own home battery pack to the US market. The South Korean company is partnering with SunRun, a solar installer that was already distributing the Tesla Powerwall.
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Last month, we reported on Faraday Future reportedly signing a massive $2.4 billion supply contract with LG Chem for battery cells. Today, the startup confirmed the supply agreement with LG without talking about the actual size of the contract.
Though the electric vehicle startup did release new details. For example, they say that they “worked closely with LG Chem to develop unique chemistry requirements for FF products”. They claim that the result is “the world’s highest energy density [cell] for a production automotive battery.”
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Back in 2007, Nissan and NEC, a Japenese tech giant, created a battery manufacturing company, Automotive Energy Supply Corporation (AESC), in order to eventually supply the automaker’s electric vehicle programs. Both companies have since each invested hundreds of millions in the venture, which started producing the battery cells for the Nissan Leaf in 2010.
At some point in 2014, it became one of the largest electric vehicle battery manufacturers, second only to Panasonic, Tesla’s battery cell supplier. The joint-venture has since lost market shares and Nissan has been quite opened about looking to partner with someone else for future EV programs, like it’s new 60 kWh battery pack.
Now we learn that the automaker is looking to sell its shares in AESC and Panasonic could be a buyer.
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A new research report from Lux Research looked into the projected growth of the battery sector for electric vehicles (BEVs and PHEVs) and concluded that the market will rise to $10 Billion in 2020 with six large carmakers led by Tesla accounting for 90% of the demand.
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Tesla often said that the Model 3’s $35,000 price tag was dependent on the company achieving its battery cost reduction goals at the Gigafactory. Recently, Tesla officials said that the Gigafactory should no longer be seen as a constraint in the Model 3 supply chain and that the company is confident in its capacity to start producing battery cells.
The factory was first presented as having a full annual output capacity of 35 GWh of battery cells and 50 GWh of battery packs – with the difference in cells being imported from other manufacturers, like Tesla’s Gigafactory partner Panasonic, but also other possible cells suppliers.
Now it looks like Tesla is looking to South Korea to diversify its battery cell supply chain for the Model 3.
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Amnesty International and Afrewatch published a new investigative report (embedded below) explaining in details the global supply chain of cobalt and the use of child labor to source the mineral in Congo.
The report highlights the failure of certain electronics and electric car companies to ensure that the cobalt used in their batteries is not sourced using child labor. It names several automakers like Mercedes, VW and BYD, as well as several battery manufacturers known to supply automakers, like LG Chem (GM and Nissan). The report also goes after electronic giants Apple, Samsung and others.
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Tesla builds its own battery packs, but imports the several thousands battery cells needed per pack from suppliers, mainly Panasonic. The automaker is heavily investing to change that by building the Gigafactory, in partnership with Panasonic, to manufacture both the cells and battery packs in the Nevada desert east of Reno.
But the planned output of the factory is 35 GWh in battery cells and 50 GWh in battery packs, meaning the Gigafactory will need to import 15 GWh of battery cells. Tesla already confirmed its intention to source the cells from more than one suppliers “potentially including Panasonic”, and today we learn through a new report from Asia Nikkei that the company is reportedly in the final stages of negotiations with LG Chem.
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Following yesterday’s announcement that GM is expanding its partnership with LG and will source a significant percentage of the parts for the Chevy Bolt from the electronic giant, LG is now announcing that it is accelerating battery production at the Holland plant in Michigan.
In a press release for the announcement, LG Chem Michigan President Nick Kassanos takes a swipe at Tesla, or at least at the media attention the company has been receiving for its own battery factory project: the Gigafactory.
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South Korean news outlets are reporting that the electronic giant LG Chem will build a new factory to produce batteries for electric cars in Europe. The new plant will reportedly have an annual production capacity of 50,000 battery packs, making it of similar size as the company’s Holland, Michigan plant where the company produces battery packs for the Chevy Volt and eventually the Bolt.
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