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Tesla battery supplier LG Chem to double production capacity: report
Tesla battery supplier LG Chem will double its cell production capacity over the next year to keep up with the growing demand for Tesla’s electric vehicles in China, a new report says.
An exclusive report from Reuters states that sources familiar with the matter have talked about strategies moving forward to keep up with increasingly popular all-electric vehicles from Tesla. LG Chem, who supplies cells to Tesla in Shanghai for the production of the Model 3 sedan, stated that it would also ship its increased output from China and Korea to Tesla production facilities in the United States and Germany once they are completed. Tesla currently has a new production facility under construction in Austin, Texas, and in Brandenburg, Germany. Reuters indicated that two people who are familiar with the matter have seen LG Chem signal an increased role in the supply chain of Tesla as it continues to grow its lead in the EV production sector.
Tesla is LG Chem’s primary customer, and the plan to double its cell production capacity comes as Tesla begins to expand its global production processes aggressively. Tesla has been manufacturing vehicles in Shanghai for around a year and announced its intentions to build a European production facility around 13 months ago. Rumors also speculate that another factory could be on the way within the next few years, and India could be the location, but nothing has been confirmed.
LG Chem to double China battery capacity to meet Tesla demand | Reuters $TSLA
— David Tayar (@davidtayar5) December 1, 2020
LG Chem has already added additional production lines to increase the possible production capacity in South Korea this year. The main purpose of the expansion was to meet demand from Tesla’s U.S. plants, the two sources told Reuters. “Tesla simply doesn’t have enough battery cells, so LG Chem is going to more than double China outputs,” the person said.
Tesla sources batteries from Panasonic, LG Chem, and CATL, and CEO Elon Musk stated at the company’s Battery Day event in September that it plans to begin making its own 4680 cells that will be less expensive and more efficient. However, the company will continue to source batteries from suppliers for the time being, but could eventually become a battery supplier on its own as it has plans to open several battery cell production facilities across the globe.
Tesla China signs contract with LG Chem for Model Y production
To keep up with global demand, Tesla will have to source batteries from third-party sources for the time being, and an LG Chem spokesperson said that there is an increased demand for cells. However, he could not elaborate on who was the cause of the expansion in cell production capacity.
“We’re continuing to expand capacity for cylindrical battery cells in response to growing demand from automakers, but we can’t comment on specific customers,” an LG Chem spokesman told Reuters.
LG Chem plans to invest $500 million over the next year to raise the annual production of 2170 cells by 8 GWh. The 2170 cells are used in the Model 3 and Model Y, Tesla’s two mass-market vehicles. Currently, eight production lines are operational at the Nanjing, China plant that LG Chem manufactures its batteries, but it plans to expand its available lines to seventeen.
Tesla currently only manufactures the Model 3 at its Chinese production facility, but it plans to begin building the Model Y within the next few months. Because of the overwhelming demand for both the Model 3 and Model Y, the move to expand 2170 cell capacity is a no-brainer, especially considering the Government-offered subsidies that China provides for clean energy vehicles.
The person who spoke with Reuters also indicated that LG Chem’s Chinese factory would initially supply battery cells for Tesla’s Giga Berlin production facility in Germany when it begins production in Summer 2021.
A new Tesla patent that has been granted to the company this week has revealed a potential strategy for solving a major issue that could impact both the Full Self-Driving suite and Optimus.
The patent, which is No. 12,636,684, describes a “Lens Cleaning System,” and was submitted by Tesla in May 2025.
The language in the patent details a lens cleaning system that can dispense fluid and wipe it away with a wiper assembly.
Optimus can see you now… 🤖👁️
The patent for @Tesla_Optimus‘s eye structure just dropped. $TSLA pic.twitter.com/Jac4VhDmKH
— SETI Park (@seti_park) May 26, 2026
This would effectively clean any debris that would potentially impact the visibility of the cameras on Tesla automobiles or Optimus’s camera eyes. Perhaps the most pertinent example is through the Full Self-Driving suite, as debris that can accumulate on the vehicle’s exterior cameras can impact the suite’s ability to operate effectively.
This requires a remedy through manual cleaning, but this patent hints that Tesla could be planning to implement this new technology on its upcoming vehicles.
Interestingly, we have started to see it on some Robotaxi vehicles, and it will likely be included in the Cybercab, especially as that vehicle will enable full autonomy.
Back in January, the first Model Y Robotaxi units were spotted with camera washers on the side repeaters, as the video below shows fluid squirting and rinsing off any debris that is limiting visibility.
🚨 Tesla looks to have installed Camera Washers on the side repeater cameras on Robotaxis in Austin
pic.twitter.com/xemRtDtlRR— TESLARATI (@Teslarati) January 23, 2026
This hardware patent does bring up an interesting question for those of us who own Teslas with AI4 and have been told that our cars will one day be capable of full autonomy: Will this washer be available as a retrofit on already-built cars?
Perhaps the “Lens Cleaning System” patent is a good look at one way Tesla plans to combat one of the most obvious issues of autonomy that utilizes a camera-based system. For Optimus, it could be less needed as it could be manually cleaned by owners. For cars, it seems like a bigger necessity, especially as autonomy nears and Tesla gets close to launching a feature-complete FSD suite.
SpaceX’s Starlink product has just gotten its latest airline adoptee, and the move marks the successful partnership of three of the “Big Four” U.S. airlines.
American Airlines announced on Tuesday that it would utilize Starlink in more than 500 narrowbody aircraft beginning in the first quarter of 2027. These include the Airbus aircraft in its fleet, including the new A321XLR and A321neo.
With the new partnership with American Airlines, Starlink is now present on three of the largest airlines in the country: American, United, and Southwest.
Starlink gets its latest airline adoptee for stable and reliable internet access
Starlink’s VP of Enterprise Sales, Jason Fritch, said:
“We are proud to bring Starlink on board American Airlines, delivering fast and reliable internet to passengers and crew. Whether traveling for leisure or business, Starlink enables a fully connected experience gate to gate, making every flight smoother and more enjoyable.”
Additionally, American Airlines Chief Customer Officer, Heather Garboden, said:
“As a premium global airline, we are continuously seeking out world-class partners like Starlink to deliver what our customers need and want. The addition of Starlink solidifies American as a leading airline in keeping passengers connected in flight.”
Starlink has been on a tear over the past year, as it has continued to be adopted by a wide variety of airlines as a more consistent and reliable way to provide WiFi to its passengers. It has already gained a great reputation among residential users, but its biggest commercial application appears to be how it is being used in the air.
American Airlines will adopt Starlink on more than 500 of its narrowbody aircraft beginning in Q1 2027
“As a premium global airline, we are continuously seeking out world-class partners like Starlink to deliver what our customers need and want,” said American Airlines Chief… pic.twitter.com/XY2wflycc0
— TESLARATI (@Teslarati) May 26, 2026
The only airline of the Big Four not to adopt Starlink thus far is Delta, which chose to opt for the alternative, which is Amazon Leo. CEO Ed Bastian said to Bloomberg that Delta chose Amazon’s product over Starlink’s because “the opportunities, in terms of the improved bandwidth with a much lower price point than what we’ve ever seen from Starlink, will make a big difference.”
Delta will not start installing Amazon Leo until 2028.
“Of course, we expect Starlink will be warning people that we’re going to go with an inferior product,” Bastian said. “But I’m not too worried about partnering with Amazon.”
Tesla Cybertruck’s newest trim level is nearing its first deliveries just a few months after being offered for an incredible deal.
Back in February, Tesla officially launched a new trim of the Cybertruck, the All-Wheel-Drive, starting at just $59,990. It was a lot of truck for the money, especially considering what it offered the Rear-Wheel-Drive variant for last year, which was a total flop.
The $59,990 price that was offered initially was a deal due to its 325-mile range rating, powered tonneau, three bed outlets, Powershare capability, coil springs with adaptive damping for a refined suspension feel, Steer-by-Wire and four-wheel steering, a 6′ x 4′ composite bed, towing capacity of 7,500 pounds, and a powered frunk.
Tesla is now nearing deliveries of this trim, according to watcher Sawyer Merritt, as Tesla has officially started assigning VINs to people who ordered the vehicle initially:
I can confirm that Tesla has officially started assigning VINs to people who initially ordered the $59,990 Cybertruck Dual-Motor AWD, which means first deliveries should start in the coming weeks!
• 325 mile range
• 7,500 lb towing capacity
• 0-60mph: 4.1s
• Bed with… pic.twitter.com/PQwVYbZf6j— Sawyer Merritt (@SawyerMerritt) May 24, 2026
Earlier this month, we reported on units of the trim being spotted outside Gigafactory Texas by Joe Tegtmeyer.
Tesla Giga Texas buzzing as new Cybertruck appears to enter production
This Cybertruck trim was interesting because it was released basically out of nowhere, priced incredibly well, and gathered many orders in a small amount of time. However, CEO Elon Musk noted just days afterward that the vehicle would only be priced at this bargain level for ten days.
Tesla fans were not happy.
Awful way to treat customers – particularly when they already sent out a marketing email announcing the $59,990 truck…with zero mention of it being a limited-time offer.
— Ryan McCaffrey (@DMC_Ryan) February 24, 2026
However, the issues with the pricing strategy have blown over since the February unveiling event, and now that deliveries are near, Tesla fans are anticipating the truck making its way to their driveways soon.
The truck is currently priced at $69,990, and deliveries for new orders are slated for between August and September 2026.
Tesla patent reveals strategy for solving major Full Self-Driving, Optimus issue
SpaceX Starlink gets its latest airline adoptee, grabbing three of the ‘Big Four’
