The Auto giant Tesla is focused on building out factories around the world. The EV maker spent over $1 bln in the past quarter, including new factories in Austin, Texas, and Brandenburg, Germany. 

Tesla’s global ambitions run to as high as 20 million vehicles by 2030, for which it shall source batteries from South Korean cell manufacturer LG Chem. To cater to this demand, LG Chem has announced that it is raising its battery manufacturing capacity in Chinese Works. Even though the spokesperson from LG Chem was not available for comment, the other internal sources confirmed the news. 

Tesla’s massive demand reflects the soaring demand for pollution-free vehicles where EVs (Electric Vehicles) enjoy a luxury space. While LG Chem has converted the battery cell business into an entirely independent unit, a confirmation that cylindrical cells’ capacity to 60-gigawatt hours by 2023 was not ruled out. This would entail a further investment of $500 million over the next year LG Chem to raise its annual cell production capacity by 8 GWh for cylindrical battery cells, a specific type, used by Tesla at its Nanjing Plant. Tesla has been on the primary clientele list of LG Chem, alongside CATL, supplying battery cells for Tesla’s Model 3 sedan built in Shanghai. 

Tesla plans to introduce a new variant under the sport-utility segment seeing a quantum leap in the car market. Undoubtedly this would call for a further capacity enhancement at LG Chem. 

What remains to be seen is whether Indian manufacturers will be on the choice pick by Tesla too?

Danny Williams is a finance news reporter and writer at FinanceTwenty. He has worked as a news editor across foremost digital publications and magazines. His main focus area consists forex and commodities along with writing latest news updates of business and finance world.

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