The cells will have a cathode with 90 percent nickel and less than 5 percent cobalt.
We know full well Tesla isn't opposed to using batteries from various manufacturers. It currently has a large and longstanding partnership with Panasonic, and it's working to produce its own batteries in-house. However, if Tesla really wants to accelerate the transition to EVs, increase production and deliveries, and secure enough battery supply to support multiple global factories, it can't push other battery makers aside.
Recent reports suggest that South-Korea based LG Chem's new battery division LG Energy Solution is close to finalizing a deal with Tesla in China. The information says LG will be a major supplier of nickel cobalt manganese aluminum (NCMA) batteries for Tesla. In addition, it appears these battery cells will be used specifically for Tesla Model Y electric crossover made in China at the Shanghai Gigafactory.
Remember, a few months ago, not long after Tesla's Battery Day event, there were reports pointing to Tesla's potential to acquire a stake in LG Chem's battery operations. In addition, Tesla has tapped both LG Chem and CATL for battery cells for its China-made Model 3.
According to Teslarati, The Korea Times reported that LG Energy Solution will be one of the world's first producers of "batteries with NMCA anode materials for electric cars." The cells will have a cathode with 90 percent nickel and less than 5 percent cobalt. Reportedly, these cells for Tesla will also be cylindrical.
The LG batteries should offer Tesla many advantages as it launches its Model Y in China. Not only will they save the company money, but they'll also likely deliver long range and excellent performance. LG is also working with General Motors on its future electric car efforts.
Do you approve of Tesla working with more battery producers? Is this a positive? Let us know your thoughts in the comment section below.