LG Chem Wins Orders for All Batteries for Chinese-Made Tesla Model Y SUV

Input 2020.11.20 19:16 | Revision 2020.11.20 20:27

LG Chem has won orders for all batteries for Tesla’s “Model Y”, an electric vehicle produced in China from next year. It was able to supply batteries, beating rivals CATL in China and Panasonic in Japan.

According to the battery industry on the 20th, LG Chem recently signed a contract with Tesla to supply batteries for Model Y, an SUV manufactured early next year at its factory in Shanghai, China. Model Y is the second product Tesla produces at its Shanghai plant after the popular “Model 3” electric vehicle.

Tesla chose LG Chem’s NCM battery (nickel, cobalt, manganese) as the battery to be installed in the Model Y. On the 5th, the Ministry of Industry and Information Technology of China announced on the 5th that the Tesla Model Y produced in China adopted the NCM battery.

Unlike Panasonic, which manufactures CATL and NCA (nickel, cobalt and aluminum) batteries in China, which mainly focus on LFP (lithium iron phosphate) batteries, only LG Chem supplies NCM batteries to Tesla. In the case of Model Y, unlike industry observations that LG Chem, CATL and Panasonic will win orders separately, LG Chem was found to supply them all.

Tesla, which has mass-produced the Model 3 in Shanghai since the beginning of this year, has proposed a goal of mass-producing the Model Y early next year and supplying it to the Chinese market.

From January to September of this year, sales of the Chinese-made Model 3 reached 8,500 units. China’s Tianfeng Securities expected sales of the Chinese-made Model Y to reach 360,000 units next year.

LG Chem (051910)An official said: “We cannot confirm customer issues.”