This is key to Tesla’s Model 3 production activities in Gigafactory 3, as the site is intended to produce only the affordable versions of the electric sedan. The two agreed upon a non-binding deal that is expected to be finalized and signed in mid-2020, according to Bloomberg, but there are details that have yet to be determined, such as how many batteries will be purchased and if the companies will enter a global supply contract. Apart from the South Korean battery maker, Tesla is reportedly tapping into the services of Contemporary Amperex Technology Co. Ltd (CATL) for a potential supply deal. Tesla’s electric cars produced at Gigafactory 3 will reportedly be powered by batteries from Chinese battery manufacturer Contemporary Amperex Technology Co. Ltd. (CATL). The company did not elaborate on the reasons for its upbeat outlook but analysts attributed it to orders from Tesla and the coronavirus pandemic that lifted demand for home appliances - one of the applications for petrochemicals products. All rights reserved. Tesla posted record quarterly deliveries in the third quarter. The advantage of having multiple large-scale battery suppliers could help drive down the overall cost of batteries according to Bloomberg Intelligence analyst Kevin Kim. These upcoming cells will reportedly feature an even higher nickel content. LG Chem’s Nanjing plant is already operating at high levels, and earlier this year, the South Korean conglomerate announced that it will be investing 1.2 trillion won ($1 billion) to expand the facility’s production capabilities even more. (Credit: Tesla), Tesla battery supplier for China starts mass production of Model 3 batteries: sources, SpaceX’s Starship Mk1 rocket already has three Raptors installed, says Elon Musk, Cars & Coffee group responds to Tesla owners after members block Supercharger en masse. According to South Korean tech publication THEELEC, LG Chem is producing NCM 811 battery cells for the electric car maker, which features a nickel proportion of 80% or more. Tesla will continue to utilize both Panasonic and LG Chem batteries for the vehicle until the agreement with CATL is complete, noted the publication’s sources. Reports from China have suggested that Tesla’s Gigafactory 3 will not be exclusively supplied by LG Chem. Both Tesla and CATL signed an agreement for two years to plop its batteries in Chinese made Model 3 sedans. Industry sources have suggested that LG Chem, a company reportedly tapped by Tesla as one of its battery suppliers for its Shanghai-based factory, has begun the … It was Tesla Model 3 vs Tesla Model 3 vs Tesla Model 3 in... One of the most interesting things about Tesla’s evolving Full Self-Driving features is the... Tesla CEO Elon Musk has a renowned sense of humor. LG Chem said faulty battery cells were not the cause of fires in Kona EVs, and the exact cause had not been determined. Copyright © 2020 CGTN. The two companies reportedly reached a preliminary agreement allowing for CATL to supply Tesla with lithium-ion batteries that will power its electric vehicles. This could eventually drive down the cost of the Model 3 for Chinese buyers, who will have to pay around $50,000 for the sedan. Sign of LG Chem seen on the 21st IE Expo China held in Shanghai, August 14, 2020. It was Tesla Model 3 vs Tesla Model 3 vs Tesla Model 3 in... One of the most interesting things about Tesla’s evolving Full Self-Driving features is the... Tesla CEO Elon Musk has a renowned sense of humor. /VCG. So far, neither Tesla nor CATL have confirmed that a battery partnership has been established for Gigafactory 3’s operations. Tesla reaches preliminary agreement with battery supplier in China, is expected to produce 3,000 Model 3 units a week, Tesla ‘Cybertruck’ Pickup unveiling event set for November 21 at SpaceX HQ, Tesla Model S, X to get bigger battery pack capacity in Plaid variant. /VCG. Beijing ICP prepared NO.16065310-3, Tesla battery supplier LG Chem forecasts record third-quarter profit. For one, the distance between the two China-based facilities is far shorter than the distance between Tesla’s Gigafactory 1 in Nevada, which produces 2170 cells for the Model 3, and the company’s Fremont factory, which assembles the vehicle. Analysts expect LG Chem's battery business to remain profitable in the third quarter and its mainstay petrochemicals business to post solid profits. The industry sources claimed that LG Chem was able to convince Tesla to opt for its NCM 811 batteries under the premise that the cells will likely maximize the range of the Model 3. /VCG . Revenue likely rose by 9 percent to 7.5 trillion won from a year earlier, the company said. South Korea's LG Chem Ltd, an electric vehicle (EV) battery supplier for Tesla and a petrochemicals maker, said on Monday its third-quarter operating profit likely jumped to a record high, beating analysts' estimates. Prior to its reported contract with Tesla, LG Chem has used its NCM 811 cells for electric buses. Copyright © TESLARATI. CATL also provides batteries for Volkswagen and Toyota. LG Chem estimated that its operating profit jumped by 159 percent to 902 billion won ($788.94 million) in the quarter ended September, above the 746 billion won analyst forecast by Refinitiv SmartEstimate. Tesla’s electric cars produced at Gigafactory 3 will reportedly be powered by batteries from Chinese battery manufacturer Contemporary Amperex Technology Co. Ltd. (CATL). Tesla's 2170 battery cells. Copied. The batteries CATL would supply to Tesla would power the company’s Made-in-China Model 3 sedan. Interestingly, the industry sources quoted by the South Korean tech publication mentioned that LG Chem is also looking to mass-produce NCMA batteries for electric vehicles starting in 2022. The global supply contract would make CATL an one of Gigafactory 3’s battery suppliers. Tesla broke ground on Gigafactory 3 in January 2019, and the company expects to begin mass production before the end of the year. If Tesla can reassure China’s EV market that its Made-in-China Model 3 has industry-leading range, the vehicle will likely receive a good amount of demand from the country’s mainstream car-buying public. CATL will not be the only company to supply Tesla with batteries after the deal is signed, as other companies such as LG Chem are also reportedly being tapped for Gigafactory 3’s battery cell supply. They already supply automotive battery cells Volkswagen and Daimler and to popular Chinese electric vehicle startup NIO. Sign of LG Chem seen on the 21st IE Expo China held in Shanghai, August 14, 2020. Industry sources have suggested that LG Chem, a company reportedly tapped by Tesla as one of its battery suppliers for its Shanghai-based factory, has begun the mass production of 2170 cells for the Model 3 in its Nanjing factory. Reports of LG Chem’s partnership with Tesla initially emerged last August when Bloomberg revealed that the battery maker and the electric car company were in discussions for a potential working partnership. Company chairman and … LG Chem, along with China's CATL, supplies batteries for Tesla's electric cars made in Shanghai. But this is not all, as more expansion is expected as per Tesla’s request. Tesla battery supplier LG Chem forecasts record third-quarter profit. Tesla's long-term plan to produce its own cells have hurt LG Chem shares, which had rallied this year due to EV expectations. Adding Tesla as a client would likely skyrocket CATL reputation considering that it is providing battery cells to the auto industry’s premier EV maker. The agreement with Tesla means CATL would be recognized as one of the biggest up-and-comers in the market for battery manufacturers. Tesla China’s battery supplier Contemporary Amperex Technology Co. Ltd. (CATL) has released details about its million-mile battery. In late August, Tesla CEO Elon Musk traveled to Shanghai where he met with CATL Chairman Zeng Yuqun. LG Chem’s Nanjing battery plant is strategically located. The global supply contract Tesla and CATL are working toward would be beneficial to the Silicon Valley-based electric car maker because it will allow them to rely less on importing batteries from Panasonic to China, eliminating the possibility of incurring additional costs from tariffs as the U.S. and China continue to work through a trade war. With Tesla as a customer for its Nanjing based plant, LG Chem has reportedly begun preparing its facilities to meet the electric car maker’s demand. Despite the rosy outlook, LG Chem shares fell by 2.3 percent over concerns of fire risks associated with its battery cells for Hyundai Motor's Kona electric vehicles. Sign of LG Chem seen on the 21st IE Expo China held in Shanghai, August 14, 2020. All rights reserved. CGTN Share . Provided that the recent reports from South Korea are accurate, the two companies’ collaboration appears to have been secured, and both companies appear to be working together to start Model 3 production in the Gigafactory 3 site. Copyright © TESLARATI. But CEO Elon Musk has been hinting at Tesla looking at other suppliers for Gigafactory 3: Tesla will manufacture all battery modules & packs at China Giga, … Tesla’s Gigafactory 3 is the first automotive plant for the company located outside the United States and is expected to produce 3,000 Model 3 units a week according to Global VP Grace Tao. The Model 3 will then be the first sedan that will use these specific, LG-made cells. The firm is expected to release detailed earnings later this month. The facility is situated about 200 miles west of Shanghai, which would make transporting the cells to the Gigafactory 3 complex at the Lingang Industrial Zone a rather simple task. Batteries are already the most expensive part of an electric vehicle, and locking in a deal with a domestic company would allow Tesla to begin expansion into China’s automotive market that was recently named as the biggest in the world, according to Nolasia. LG Chem shares also have been under pressure after it said last month that it plans to separate its battery business as an independent unit.