South Korea’s LG Energy plans to invest $451 million to begin mass production of Tesla Inc’s (NASDAQ: TSLA) 4680 battery cells, Tesmanian reported on Monday, citing the battery supplier.
What Happened: LG Energy plans to begin mass production of the new battery cells next year.
The battery supplier plans to add 9 gigawatt-hours (GWh) worth of production capacity for the new 4680 cylindrical batteries at its #2 Ochang factory.
The new battery, which has nickel, cobalt, manganese, and aluminum (NCMA) composition, has an increased nickel composition of up to 95% and added aluminum.
“We have decided on the investment to increase our production capabilities on the back of global automakers’ rising interest in cylindrical batteries,” the report said, citing Kwon Yong-soo, vice chairman and CEO of LG Energy Solution.
See Also: This Tesla, Lucid Supplier Is Investing $7.2B In North America To Boost EV Battery Output
Why It Matters: Tesla revealed the 4680 battery in 2020, saying the pack will allow it to increase capacity and range by 30% without new chemistry.
The 4680 type battery cell is considered the most advanced among the battery cells used in electric vehicles.
LG Energy is also reportedly investing $7.2 billion to build new battery plants in North America including two in the U.S. and one in Canada.
Price Action: Tesla closed 7.1% lower at $647.2 on Monday, according to data from Benzinga Pro.
