LG Chem plans to double the output of cylindrical batteries

According to foreign media news, LG Chem stated that it plans to triple the production of cylindrical batteries used by companies such as Tesla and is considering expanding in Europe and North America to meet the surge in demand. LG Chem also stated that it is currently developing a 'new' cylindrical battery that will increase its capacity by 5 times and its power by 6 times, but did not elaborate. Interestingly, this is similar to the goal of the new battery 4680 battery announced by Tesla last month, which can increase the range of Tesla cars by 16%. At present, LG Chem and CATL supply batteries for Tesla's Model 3 manufactured in my country. LG Chem's contacts with Tesla have become more frequent. Last month, Tesla was seeking to acquire a 10% stake in LG EnergySolution, which is the battery business that LG Chem is planning to spin off. LG Chem did not propose a specific time when it plans to increase the production of cylindrical batteries. However, it can be seen that the 'new' cylindrical battery developed by it is likely to flow to Tesla in the future. Recently, LG Chem CEO Xin Xuezhe said that the company is negotiating with several automakers to establish joint ventures to process electric vehicle batteries. However, he added that Tesla is not the company they are negotiating for the joint venture. Due to the rising demand for electric vehicle batteries, LG Chem's third-quarter performance has risen. In the first three quarters, its sales amounted to US$6.25 billion (approximately RMB 41.7 billion), an increase of 8.2% from the previous quarter and an increase of 8.8% year-on-year; operating profit was US$750 million (approximately RMB 5 billion), an increase of 57.8% from the previous quarter. A year-on-year increase of 158.7%. Among them, Q3 sales of the battery business were US$2.62 billion (approximately RMB 17.5 billion), and operating profit was US$140 million (approximately RMB 930 million). According to data, the increase in performance is mainly due to the introduction of new electric vehicles by important European customers, the increase in sales of cylindrical batteries, and the expansion of the supply of IT products. LG Chem said: “Due to the increase in shipments of cylindrical batteries for electric vehicles, sales are expected to continue to rise.” At present, LG Chem’s total output of power lithium batteries has reached 130Gwh. LG Chem plans to expand production to 260GWh by 2023, which is enough to equip about 5 million electric vehicles with batteries. Data show that the planned global output of power lithium batteries will increase to 621GWh in 2022, and the growth rate will reach more than 5 times in the next three years. With the surge in demand for power lithium batteries in the future, it is imperative for LG Chem to expand production in order to seize the market share. However, at the same time as the expansion of production territory, LG Chem has fallen into a battery safety and quality crisis, which will cause many obstacles and challenges to the expansion of its power lithium battery business. Disclaimer: Some pictures and content of articles published on this site are from the Internet. If there is any infringement, please contact to delete. Previous post: The progress of lithium iron phosphate penetration and the change of ternary