Enter 2021.03.17 06:00
According to the electric vehicle battery industry on the 17th, LG Energy Solutions decided to build a cylindrical battery factory by investing more than 5 trillion won in the US. Currently, LG Energy Solutions’ cylindrical battery factories are only in Korea and China. LG decided to make full-fledged investment after selecting at least two candidate sites in the US by the first half of the year.
It is reported that LG’s new plant will produce 4680 cylindrical batteries. The 4680 is a battery with a diameter of 46 mm and a length of 80 mm, which was introduced by Elon Musk Tesla’s CEO during’Battery Day’ in September of last year as a next-generation battery. LG has already successfully produced a prototype 4680 battery, but it is known that it will take time to mass-produce. Tesla’s Model 3 vehicle is known to have about 3000 to 4500 2170 batteries installed.
Kang Dong-jin, a researcher at Hyundai Motor Securities, said, “Recently, through foreign press, it was mentioned that LG will increase Tesla’s 4680 battery plant in the United States and Europe.” “We believe that the possibility of expansion of cylindrical batteries is high as it can secure not only Tesla but also various customers, as it uses cylindrical batteries of the company.”
Samsung SDI, which mainly produces prismatic and cylindrical batteries, has also started to expand its cylindrical battery production plant. Samsung SDI is considering expanding its battery plant in Tianjin, China. Tenjin is the base for producing cylindrical batteries of Samsung SDI. Samsung SDI’s 1865 (diameter 18mm, height 65mm battery) and 2170 batteries are installed in Tesla Model S and Model X, respectively. In the industry, there are observations that Samsung SDI’s expansion of the cylindrical battery plant was designed with Tesla supply in mind.
Domestic battery makers are paying attention to the growth potential of the US electric vehicle market. The United States is counted as one of the world’s three largest electric vehicle markets, but the spread of electric vehicles is slower than in Europe and China. As of the end of last year, the penetration rate of electric vehicles (the proportion of electric vehicles among new car sales) was 10.5% and 5.6% in Europe and China, respectively, while the US was only 2.2%. As the US Biden government is actively promoting eco-friendly policies including electric vehicles, expectations for the growth of the electric vehicle market are also growing. This is the reason that domestic battery makers are trying to woo Tesla, the number one electric vehicle company in the US, as they expand their cylindrical battery production facilities.
An industry insider said, “Cylindrical batteries are widely used in electric bicycles produced in the US as well as electric vehicles, so there is a great potential for growth.” Expected.