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Tesla battery partner LG Chem sees revenue doubling by 2025 as EVs gain ground
The electric vehicle market may be hitting some bumps this year due to the pandemic, but one of Tesla’s key battery suppliers, LG Chem, is optimistic nonetheless. In a recent interview at his office in Seoul, LG Chem Chief Executive Officer Hak Cheol Shin noted that he expects the company to double its revenue by 2025, thanks in no small part to the momentum of electric car makers like Tesla.
As noted in a Bloomberg report, LG Chem’s revenue this year is expected to reach a record of 13 trillion won (about $11 billion). This is incredibly impressive, though the LG Chem CEO stated that the company’s revenue could hit 30 trillion won by 2025 (about $25 billion). Shin also noted that LG Chem has no issues when it comes to its supply chain, which should allow it to meet the demand of its customers.
“We have no problem in our supply chain and can deliver all of the orders from customers this year despite the coronavirus,” he said.
LG Chem sales have jumped 83% to 10.5 GWh, and part of this is due to Tesla’s ramp of the Made-in-China Model 3 in Gigafactory Shanghai. As noted by SNE Research, LG Chem’s partnership with Tesla, as well as the sales of the Renault Zoe, have helped the South Korean firm take the market lead over China-based Contemporary Amperex Technology Co. Ltd. (CATL). Interestingly enough, CATL also happens to be a partner of Tesla China.
According to Hwang Kyu-Won, an analyst at Yuanta Securities Korea Co., LG Chem’s partnership with Tesla would likely contribute greatly to the South Korean firm’s revenue goals, thanks to the American electric car maker’s dominating lead in the EV market. That being said, even if new companies and legacy automakers catch up to Tesla, LG Chem could still see notable benefits to its business.
“The point is how much LG will be able to get orders from Tesla, because everyone agrees Tesla will lead the electric-car market. However, if other automakers catch up with Tesla, that might be good news for LG Chem too, because of its diversified customers,” Hwang said.
Considering that Tesla has only just started entering the mass market with the Model 3 and the Model Y, the company’s business with LG Chem would likely go on for quite a long time. This is evident in Tesla’s partnership with Panasonic, which has been ongoing since 2009. If LG Chem could keep Tesla as a partner, its business would likely benefit from the notable momentum currently gathering in the EV sector.
As for the LG Chem CEO, he appears to believe that the global electric vehicle market still has a lot of growth yet. “The global electric vehicle industry itself is growing fast, but the penetration rate is about 3% now,” Shin said.
Elon Musk
SpaceX secures win as US labor board drops oversight case
The NLRB confirmed that it no longer has jurisdiction over SpaceX.
SpaceX scored a legal victory after the National Labor Relations Board (NLRB) decided to dismiss a case which accused the company of terminating engineers who were involved in an open letter against founder Elon Musk.
The NLRB confirmed that it no longer has jurisdiction over SpaceX. The update was initially shared by Bloomberg News, which cited a letter about the matter it reportedly reviewed.
In a letter to the former employees’ lawyers, the labor board stated that the affected employees were under the jurisdiction of the National Mediation Board (NMB), not the NLRB. As a result, the labor board stated that it was dismissing the case.
As per Danielle Pierce, a regional director of the agency, “the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”
The NMB typically oversees airlines and railroads. The NLRB, on the other hand, covers most private-sector employers, as well as manufacturers such as Boeing.
The former SpaceX engineers have argued that the private space company did not belong under the NMB’s jurisdiction because SpaceX only offers services to “hand-picked customers.”
In an opinion, however, the NMB stated that SpaceX was under its jurisdiction because “space transport includes air travel” to get to outer space. The mediation board also noted that anyone can contact SpaceX to secure its services.
SpaceX had previously challenged the NLRB’s authority in court, arguing that the agency’s structure was unconstitutional. Jennifer Abruzzo, the NLRB general counsel under former United States President Joe Biden, rejected SpaceX’s claims. Following Abruzzo’s termination under the Trump administration, however, SpaceX asked the labor board to reconsider its arguments.
SpaceX is not the only company that has challenged the constitutionality of the NLRB. Since SpaceX filed its legal challenge against the agency in 2024, other high-profile companies have followed suit. These include Amazon, which has filed similar cases that are now pending.
News
Tesla accuses IG Metall member of secretly recording Giga Berlin meeting
The union has denied the electric vehicle maker’s allegations.
Police seized the computer of an IG Metall member at Tesla Giga Berlin on Tuesday amid allegations that a works council meeting was secretly recorded.
The union has denied the electric vehicle maker’s allegations.
In a post on X, Gigafactory Berlin plant manager André Thierig stated that an external union representative from IG Metall attended a works council meeting and allegedly recorded the session. Thierig described the event as “truly beyond words.”
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote in his post on X.
Police later confirmed to local news outlet rbb24 that officers did seize a computer belonging to an IG Metall member at the Giga Berlin site on Tuesday afternoon. Tesla stated that employees had contacted authorities after discovering the alleged recording.
IG Metall denied Tesla’s accusations, arguing that its representative did not record the meeting. The union alleged that Tesla’s claim was simply a tactic ahead of upcoming works council elections.
The next works council election at Giga Berlin is scheduled for March 2 to 4, 2026. The facility’s management had confirmed the dates to local news outlets. The official announcement marks the start of the election process and campaign period.
Approximately 11,000 employees are eligible to participate in the vote.
The previous works council election at the plant took place in 2024, and it was triggered by a notable increase in workforce size. Under German labor law, regular works council elections must be held every four years between March 1 and May 31.
Elon Musk
Elon Musk’s xAI plants flag in Bellevue AI hotspot
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Elon Musk’s artificial intelligence company xAI has leased a full floor at Lincoln Square South in downtown Bellevue, WA, as per city permit filings.
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Public records indicate that xAI leased roughly 24,800 square feet in Lincoln Square South. The location was previously occupied by video game company Epic Games. Lincoln Square South is part of the Bellevue Collection, which is owned by Kemper Development Co.
The lease was first referenced in January by commercial real estate firm Broderick Group, which noted that an unnamed tenant had secured the space, as stated in a report from the Puget Sound Business Journal. Later filings identified xAI as the occupant for the space.
xAI has not publicly commented on the lease.
xAI hinted at plans to open an office in the Seattle area back in September, when the startup posted job openings with salaries ranging from $180,000 to $440,000. At the time, the company had narrowed its location search to cities on the Eastside but had not finalized a lease.
xAI’s Bellevue expansion comes as Musk continues consolidating his businesses. Last week, SpaceX acquired xAI in a deal that valued the artificial intelligence startup at $250 billion. SpaceX itself is now valued at roughly $1.25 trillion and is expected to pursue an initial public offering (IPO) later this year.
Musk already has a significant presence in the region through SpaceX, which employs about 2,000 workers locally. That initiative, however, is focused largely on Starlink satellite development.
Bellevue has increasingly become a center for artificial intelligence companies. OpenAI has expanded its local office footprint to nearly 300,000 square feet. Data infrastructure firms such as Crusoe and CoreWeave have also established offices downtown.
SpaceX secures win as US labor board drops oversight case
Tesla accuses IG Metall member of secretly recording Giga Berlin meeting
