New plants are expected in the U.S. and/or Europe.

LG Chem's LG Energy Solution is already engaged in the development of its 4680 battery cells (the new type proposed by Tesla in September 2020) and pilot production line.

According to the latest Reuters' report, the South Korean manufacturer hopes to receive the first order and start production in 2023. At the moment, there is no deal yet.

Depending on Tesla's need, the company might invest in new manufacturing plants in the U.S. and/or in Europe. In Europe, Tesla will need 4680 batteries for EVs produced at the Giga Berlin plant.

A piece of interesting news is that LG Energy Solution already has made samples of the 4680 cells, but the undisclosed, unofficial sources indicate that production at scale will require overcoming "technological hurdles":

"The Korean supplier, a unit of LG Chem, has made samples for the so-called 4680 large-format cylindrical cells, said the sources, who asked not to be identified. It faces technological hurdles and the challenge of scaling up production, people familiar with the matter said."

Not only LG Chem's LG Energy Solution is interested in becoming a supplier of the 4680 cells for Tesla, which is the largest customer in the EV market. We know that Panasonic is also working on its pilot production line and there might be other companies interested as well. On top of that, Tesla has its own pilot production line in California.

The new 4680 cylindrical cells are expected to offer higher energy density, higher power as well as lower cost, especially when combined with the structural pack approach. Potentially, various chemistries to be applied - from LFP, hrough NCM to NCA types.

Once the new cells will hit high scale, previous types like 18650 or 2170 probably will gradually fade away.

Here is a short video, presenting the 4680 cell's shingle spiral:

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