LG Chem to double battery production capacity in China to keep up with Tesla demand: Report

LG Chem

One of Tesla’s main battery suppliers in China is reportedly set to more than double its production capacity in order to keep up with orders from the electric vehicle (EV) automaker.

According to a report from Reuters, LG Chem’s increased production will not only supply batteries for Giga Shanghai, but also be sent to Fremont, Giga Texas, and Giga Berlin. The South Korean battery firm will increase its output at its facilities in Korea and China.

“Tesla simply doesn’t have enough battery cells. So LG Chem is going to more than double China output,” a source told Reuters.

It won’t be the first time LG Chem has had to shift gears to satisfy orders from Tesla. Earlier this year they added more production to their facilities in South Korea.

This news comes on the heels of reports last week that LG Chem had been selected to be the sole supplier of batteries for the made-in-China Model Y. Tesla this week received approval to sell the electric SUV in China, signalling production could start very soon.