Tesla is said to be on the verge of striking a deal with South Korean company LG Energy Solutions (LGES) for the supply of electrodes. This deal is expected to support the production of a significant number of electric vehicles as Tesla gears up for increased in-house battery production. According to reports from industry sources, Tesla is in the process of finalizing an order worth around $4.4 billion for six trillion won worth of electrodes from LGES.
This quantity is anticipated to be sufficient for the production of approximately 1.3 to 1.4 million EVs. While the order has reportedly been placed, specific details of the contract are still being negotiated. It has been indicated that the supply of electrodes is slated to commence next year and is projected to continue for a duration of 6 to 7 years.
The timing coincides with Tesla’s pattern of releasing updated versions of its vehicles. This suggests that Tesla intends to take on the production of battery cells by receiving these crucial electrode materials. In summary, the development of this potential deal between Tesla and LG Energy Solutions indicates a strategic move by Tesla to further its in-house battery production capabilities.
This aligns with the broader trend of electric vehicle manufacturers seeking to secure crucial components for their production processes.