Will this facility supply more lithium-ion batteries to nearby Tesla Giga Shanghai?
The company actually has two facilities in Nanjing. The second one (envisioned for expansion) produces cylindrical batteries (2170 type) cells for the Tesla Model 3, produced at the nearby Tesla Giga Shanghai.
We guess that with the increased volume of MIC Model 3 and the upcoming MIC Model Y, LG Chem is simply installing additional production lines.
In total, LG Chem's investment in Nanjing will exceed 2 trillion won ($1.8 billion) and should be completed by the end of 2022. Half of the amount was already spent by the end of June 2020.
Another interesting bit of news is the $300 million investment in Nanjing by LG Electronics, which intends to produce more EV parts like electric motors, on-board chargers, power electronics (inverters and DC/DC converters we guess), displays, radars and other components.
LG Chem plants:
- South Korea
- China: two plants in Nanjing (2nd plant output is 6 GWh initially and to be 32 GWh by 2023)
- China: a 50/50 joint venture with Geely Auto (expected 10 GWh annually from 2021)
- Poland, Europe (€1.5 billion project, planned for 65 GWh annually)
- U.S.: Michigan
- U.S: 2nd plant in the U.S. announced (50/50 JV with GM in the Lordstown area of Northeast Ohio, more than 30 GWh annually)