LG Energy Solution has decided to expand its battery production capacity. The expansion is driven by surging demand for the Tesla Model Y.
The success of the Tesla Model Y is prompting LG Energy to reconsider its factory output. The battery maker is expanding its Nanjing facilities to produce more cylindrical batteries. Insider sources claim Tesla has been increasing battery orders and the plant has been running at full capacity.
The source added that LG Energy will set up two new production lines at Plant 9 in 2026. There are plans to add even more down the line. Each line outputs up to 2 GWh annually, but they will eventually produce in the double-digit GWh.
LG Energy, through one of its subsidiaries, operates battery factories in China. The LGESNJ subsidiary produces cylindrical batteries in nine plants across five locations in the Nanjing area.
Plant 9 was completed years ago, but is coming online for the first time. LG Energy has signed up workers and will soon assign them to tasks in preparation for manufacturing to begin. The plant was modelled after Plant 6, which houses LG Energy’s most advanced battery manufacturing processes.
LG Energy’s Plant 6 started production in 2019 and supplies batteries to Tesla’s Giga Shanghai. It has a total capacity of 30 GWh per year, and the batteries have powered the Tesla Model 3, Model Y, and Model YL.
The Tesla Model Y, meanwhile, continues to sell like hot cakes. The electric SUV has emerged as the best-selling vehicle in multiple countries, including the Netherlands, China, Switzerland, Colombia, Australia, and New Zealand.
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