South Korea’s LG Energy Solution (KRX: 373220) has begun full-scale production of the 4680 battery, the next-generation battery electric vehicle announced by Tesla.
The 4680 battery has five times the capacity and six times the power of the current 2170 battery, providing a 16% increase in the electric vehicle range.
Tesla is reportedly sourcing the 4680 battery from LG Energy Solution and Panasonic, with LG Energy Solution entering full-scale mass production after only having a pilot production line.
The company aims to stay ahead of the competition in 4680 battery technology, with mass production expected by the end of the year.
Due to its technological superiority, LG Energy Solution is expected to lead in mass production capacity.
Rival Panasonic plans to begin mass production in 2024, starting with its Wakiyama plant in Japan before manufacturing in the United States.
LG Energy Solution plans to work with domestic equipment, materials, and component companies to produce the 4680 battery.
The battery is expected to use high-nickel anode and silicon cathode materials to improve performance.