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Tesla battery supplier LG Chem to double production capacity: report

Tesla Gigafactory Nevada battery cell production line (Credit: Super Factories)

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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.

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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.

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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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Starlink executives meet with India’s Commerce Minister

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(Credit: Starlink)

Starlink is advancing its India entry plans, with senior executives meeting Commerce Minister Piyush Goyal.

Starlink senior executives and Minister Goyal discussed investments and partnerships in India. The talks are pivotal for Starlink’s entry into the Indian market. Starlink’s delegation, including Vice President Chad Gibbs and Senior Director Ryan Goodnight, met Goyal on Wednesday.

“Discussions covered Starlink’s cutting-edge technology platform, their existing partnerships & future investment plans in India,” Goyal posted on X.

The meeting with Starlink executives marked the first official engagement with an Indian Minister and underscores SpaceX’s commitment to the region, reported ET. As of this writing, Starlink has not announced future meetings with Communications Minister Jyotiraditya Scindia.

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SpaceX has already started preparing to bring its satellite internet service to the Indian market. The aerospace company has secured deals with India’s top wireless carriers, Bharti Airtel and Jio Platforms, to distribute Starlink equipment and services through their outlets.

Bharti Airtel announced its partnership with Starlink first, followed by Jio Platforms. Both wireless carriers aim to leverage Starlink’s technology to expand internet access in India and their customer base. SpaceX is also in discussions with Vodafone Idea Ltd.

“We are in exploratory talks with various Satcom providers, including Starlink,” commented Vodafone.  

These partnerships position Starlink to tap India’s vast telecom market, with potential for further collaboration. Despite these strides, Starlink still awaits regulatory approval to operate in India.

As of November 2024, the company must fully comply with the government’s security regulations, particularly on data storage, to secure its license. The pending approval highlights the complexities of entering India’s tightly regulated telecom sector, where compliance is critical.

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Starlink’s push into India aligns with its global expansion strategy, leveraging its satellite constellation to deliver high-speed internet to underserved regions. The partnerships with Bharti Airtel and Jio Platforms, combined with ongoing talks with Vodafone Idea, signal strong local support for SpaceX’s technology.

However, regulatory hurdles remain a key challenge. As Starlink navigates India’s security requirements, its investments and carrier tie-ups could reshape the nation’s internet landscape, offering a new era of connectivity if approval is granted.

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Tesla confirms rollout of critical feature, but Cybertruck misses out

Tesla’s S3XY lineup will get the Adaptive Headlights, but Cybertruck will not.

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Credit: @jojje167 on X

Tesla has confirmed the rollout of a new, critical feature that is coming to the United States for the first time.

However, the Cybertruck will unfortunately miss out on it.

Tesla has a distinct advantage among many automakers as their Over-the-Air updates make their vehicles better over time. While many automakers have the ability to roll out new features through these updates, Tesla has been shown to be one of the companies that can truly make things significantly better with their cars.

A new feature coming to the United States and now rolling out is Adaptive Headlights. This feature will be applied to Model S, Model 3, Model X, and Model Y vehicles with the proper hardware.

Adaptive Headlights are different than your typical auto highbeams in the way that they can dim certain pixels of the bulb to keep visibility for the Tesla driver high, while eliminating glare for those who are in oncoming cars:

For the first time, Tesla is rolling out the feature to these vehicles in the United States. European Tesla owners were able to use the function several months back, but it was pending approval in the U.S.

At first, Tesla VP of Vehicle Engineering, Lars Moravy, said that the Cybertruck would have this feature. However, in late February, he confirmed that he was incorrect and the all-electric pickup will not have the ability to get Adaptive Headlights, as the company could not fit the correct hardware in the Cybertruck’s module:

The feature certainly makes visibility better for everyone on the road and will improve overall safety while eliminating the pesky and annoying feeling of being blinded by high beams.

The Adaptive Headlight feature for Tesla is part of the company’s Spring Update for 2025.

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Tesla Model 3 wins ‘most economical EV to own’ title in new study

The Tesla Model 3 has captured another crown in a recent study showing the most cost-effective EVs

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tesla model 3 driving on a wet road
(Credit: Tesla)

The Tesla Model 3 recently captured the title of “most economical electric vehicle to own” in a new study performed by research firm Zutobi.

Perhaps one of the biggest and most popular reasons people are switching to EVs is the cost savings. Combining home charging, lower maintenance costs, and tax credits has all enabled consumers to consider EVs as a way to save money on their daily drivers. However, there are some EVs that are more efficient and cost-effective than others.

Tesla police fleet saves nearly half a million in upkeep and repair costs

Zutobi‘s new study shows that EV cost-effectiveness comes at different levels. For example, some cars are simply better than others on a cost-per-mile basis. The study used a simple process to determine which EVs are more cost-effective than others by showing how much it would cost to drive 100 miles.

National averages for energy rates have been used to calculate the cost as they widely vary from state to state.

The Rear-Wheel Drive Tesla Model 3 was listed as the most economical vehicle in the study:

“The standard Tesla Model 3 is the most economical electric vehicle to drive in 2025. With a usable battery capacity of 57.5 kWh and a real-world range of 260 miles, it costs just $3.60 to drive 100 miles. That translates to an impressive 2,781 miles per $100 of electricity—making it the most efficient choice for EV owners nationwide.”

It had an estimated cost of just $3.60 to drive 100 miles.

The Tesla Model 3 Long Range All-Wheel Drive was second, the study showed:

“Next is the Long Range version of the Model 3, which offers extended range and dual-motor all-wheel drive. With a larger 75 kWh battery and 325 miles of range, the cost to drive 100 miles is slightly higher at $3.75, still equating to a strong 2,665 miles per $100.”

This version of the Model 3 had a price of just $3.75 to drive 100 miles.

In third, the BMW i4 eDrive35 surprised us with a cost of just $4.12 to drive 100 miles:

“Rounding out the top three is the BMW i4 eDrive35, with a 67.1 kWh battery and a real-world range of 265 miles. Drivers can expect to pay $4.12 per 100 miles, which still allows for 2,429 miles per $100—a solid choice for those seeking luxury and efficiency.”

Several other Teslas made the list as well. The Model 3 Performance ($4.34 per 100 miles) was sixth and tied with the Volkswagen ID.3 Pure, the Tesla Model S Long Range ($4.35 per 100 miles) was 8th, and the Tesla Model Y Long Range was ninth ($4.36 per 100 miles).

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