Samsung SDI Beats LG Chem in Bid to Sign Battery Deal With Tesla for Model S and Model X

AUG 27 2013 BY ERIC LOVEDAY 21

Tesla Motors To Have Two Battery Suppliers?

Tesla Motors To Have Two Battery Suppliers?

According to The Korea Herald, Samsung SDI is in the final stages of inking a lithium-ion battery supply deal with Tesla Motors.

Before even thinking that this spells the end of the long-standing deal between Tesla and Panasonic, we’ll say this: Tesla needs additional cells, which Panasonic can’t supply at the moment.  Samsung SDI will likely step in to fill that shortfall.  Tesla will still work mainly with Panasonic for the time being.

Okay, let’s move on.

The Korea Herald quotes a “source close to the matter” as saying this:

“We understand SDI and Tesla are undergoing last-minute tests before the Korean company starts to supply its batteries.”

Samsung SDI Cells

Samsung SDI Cells

Those last-minute tests reportedly include a battery-life analysis conducted by Samsung SDI and safety tests to be done with both Samsung and Tesla present.

Sources says that the Samsung SDI cells will make their way into the Tesla Model S and maybe even the Model X.  Those cells could show up immediately, as Tesla is said to be running dangerously low on supply from Panasonic.

For what it’s worth, Panasonic is racing to catch up, but Panasonic won’t have its additional supply lines open until mid-2014.

The Korea Herald further says that China’s BYD may be join Tesla’s lithium-ion battery supply chain, too.

The addition of both Samsung SDI and BYD will ensure that there are no supply disruptions for future Tesla vehicles.

Sorry LG Chem...Better Luck Next Time

Sorry LG Chem…Better Luck Next Time

Of note, reports say Tesla looked at both Samsung SDI and LG Chem in Korea.  In the end, Samsung came out victorious.  Why so much interest in inking a supply deal with Tesla?  Well, as The Korea Herald quotes one more “industrial source who declined to be identified:”

“Tesla is sought after by Korean battery makers because of the sensation it is causing in the market, and because of the potential it holds.”

Samsung SDI would not officially comment on its possible dealings with Tesla.

Samsung SDI is the supplier of record for the BMW i3 and Fiat 500e.

Source: Korea Herald

Is This the Samsung Cell Tesla Will Use?

Is This the Samsung Cell Tesla Will Use?

Categories: General, Tesla

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21 Comments on "Samsung SDI Beats LG Chem in Bid to Sign Battery Deal With Tesla for Model S and Model X"

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Anthony

I figure these are the cells they will use from Samsung…

http://www.samsungsdi.com/battery/cylindrical-ICR18650-28A.jsp

Samsung has one higher capacity cell, but it has a lower max charge rate which I don’t know how well it would handle Supercharging.

ItsNotAboutTheMoney

Well, Tesla:
– uses a modified chemistry
– uses a slightly modified physical design
– does their own active management

So I wouldn’t really be too wedded to Samsung’s specs.

Spec

They are not going to use that cell. They use different chemistry mixes.

GeorgeS

I thought that Panasonic’s highest energy cells were 2.9 and 3.1 mah. so that would make them slightly better than these Samsung cells.

Panasonic cells: 3.6V/2900mAh = 10.44 Wh/cell
Samsung: 3.75V/2800mAh = 10.5Wh/cell

So they’re mostly equivalent as far as energy storage goes. They aren’t drop-in equivalent though, and the firmware to control the packs will have to be different (different voltage characteristics and such). And there isn’t much on power or cycle characteristics on Samsung’s site.

GeorgeS

Thx Anthony,
What happened to the 3.1’s??
(My data is kind of old)

I don’t know if Tesla ever used the 3100s. I looked at their spec sheets and they seem to have more capacity fade. I’ve always been using the 2900s as my benchmark.

Dan Frederiksen

Both LG and Samsung seem to have 3000mAh cells. LGchem seems to be slightly cheaper

Ocean Railroader

Don’t worry Panasonic Tesla is like the Cookie Monster of the battery world they are never full. In fact I think it’s quite possible that Tesla could easily eat though Samsung’s supplies of batteries and they would still eat though Panasonic new capacity and even if Samsung and Panasonic both raised battery capacity by ten times each Tesla could still easily munch though that.

The reason why I say this is that Tesla is making 450 to 500 cars a week and they have almost run out of batteries from Panasonic and Elon Musk wants to raise car making to 800 a week by next year which alone could eat up large amounts of batteries. Now think of how many batteries he would need if he was making say 1200 to 1500 cars a week.

Bonaire

I think it’s getting to be more like 580/week now.

Turbofroggy

I think eventually Tesla could be buying batteries from LG as well. Since LG has a plant in the US now, LG could tool up to produce 18650s as well as pouch cells. This would lower the shipping time and costs, giving the advantage to LG.

Francis L

This is probably a bad news for battery price. This means that Tesla is buying so much batteries that Panasonic can’t produce enough, making no reason for Panasonic to drop prices. Samsung’s batteries are probably more expensive, as it is not the first choice of Tesla. I guess will see new price drop after that panasonic starts produce more battery, but probably not before.

David Murray

Yeah, but with all things like this if Tesla is signing big contracts for huge supplies of batteries, they probably demand a lower price.

David Stone

also, eventually capacity will rise, therefore supply.

And when other car makers come on board, capacity will rise further still, with the following changing balance of supply and demand.

That, along with huge economies of scale and inter-company competition…

Francis L

In short term view, this news means that the demand grow faster than the offer. Samsung can sell it cells even if Panasonic’s cells are better or cheaper. Tesla already has bulk pricing, they buy everything that the manufacture can produce! So in a short term, I don’t think that will see a big price drop.

But of course, on a mid term view, Panasonic is building a second line of production, which should open in a year. When this will happen, offer will grow and prices will drop.