Elon Musk: South Korea Among Top Candidates For EV Investment

Tesla might also expand its partnership with South Korean suppliers.

Tesla Giga Texas (Tesla Gigafactory 5): Model Y body (welding) line

Mark Kane

By: Mark Kane

Nov 23, 2022 at 10:19am ET

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While the new plants in Germany and in Texas are ramping-up production, Tesla is already considering where to build another manufacturing site.

According to recent media reports, one of the next gigafactories might be built in Asia and South Korea has a big chance to attract the investment.

Tesla's CEO Elon Musk said during a virtual meeting with South Korean President Yoon Suk Yeol that he considers the country as a top candidate for EV investment.

However, the decision has not been made and any investment will require reviewing investment conditions in other countries, Musk added.

Let's recall that in the Asia region alone, Tesla would be welcome also in Indonesia, India, and probably many other countries. A new automotive plant usually translates into several billion dollars of investment and thousands of new jobs.

Tesla Giga Shanghai in China is currently the world's largest electric car factory with an output that might exceed 1 million units annually. It's an open question whether such capacity is currently enough for Asia (end export to some other markets, including Europe), or if another plant would be needed to support expansion.

According to Reuters, Yoon's office mentioned also that Tesla might step up cooperation with South Korea on supply chains.

The company is already closely working with LG Energy Solution, which supplies 2170-type cylindrical lithium-ion cells for Tesla and is engaged in the development of the 4680-type cylindrical format, which initially will be produced in South Korea.

According to the article, in 2023 alone, Tesla expects to buy components worth more than $10 billion.

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Tesla is also open to actively investing in charging infrastructure in South Korea, but we don't yet know what it really means - the situation in the country is similar to the US. Tesla uses its own charging standard, while Hyundai Motor Group and other manufacturers are using CCS1.

Asia is not the only area where Tesla might build a new gigafactory. Earlier this year we heard a report about Canada and talks with Ontario government.

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