Tesla is looking to acquire a 10% stake in LG Chem to strengthen its battery supply: report



Local press reports in South Korea have said that Tesla is looking to get a stake in LG Energy Solution, which will soon be separated from LG Chem. The initiative is reportedly intended to procure a stable supply of batteries to the American electrical car manufacturer and its upcoming projects. 

The data was linked by sources from the banking sector from South Korea. Discussing with local publication The Korea Times, the sources, who opted to stay anonymous,” noted that Tesla is looking to acquire around 10 percent of LG Energy Solution. Such a transfer should enable Tesla to secure a more secure footing from the battery sector, which should prove pivotal as the company evolves its manufacturing efforts for its vehicles and electricity storage solutions. 

“Tesla is looking to get a stake in LG Energy Solution. Specifically, Tesla is believed to be investigating taking around a 10 percent stake in LG Energy Solution,” one of the novel ’s sources stated. 

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Another source reportedly knowledgeable about the matter commented that while it is too early to decide if Tesla includes a definite strategy to acquire a stake in LG Energy Solution, such an initiative can play heavily from the electrical car maker’therefore prefer. This is particularly notable since Tesla has said that it will be maintaining its own battery partners despite its efforts to produce its own cells

“It’s fairly early to tell if Tesla comes with an actual plan to get a stake in LG Energy Solution. However, given Tesla’s climbing efforts at price reductions and moves in producing batteries that are round, it will make sense that Tesla would explore an opportunity to buy a stake in LG Energy Solution,” the origin noted. 

LG Chem now stands as a key supplier to electrical car makers such as Tesla. In a previous announcement, the business noted that its decision to spin off its own battery business was initiated since it was the “time to do so. Together with the continued adoption of electrical automobiles, after all, structural profits in the electric vehicle battery sector are currently being made. 

Tesla now maintains several crucial battery partnerships with companies like Panasonic, which produces the 2170 cells from this Model 3 and Model Y in Gigafactory Nevada. Apart from Panasonic, Tesla also includes partnerships with China-based firm CATL and LG Chem. Considering the organization ’therefore approach to diversifying its own battery supply stations, it could then come as no surprise if Tesla does acquire a substantial stake in LG Chem. 

“While China’s CATL is also one of the top battery suppliers to Tesla, given Tesla’s deep partnership with Panasonic, Tesla’s equity purchase of LG Energy Solution could return and it’s no real surprise to see that,” one of the Times’ sources commented. 

The post Tesla is looking to acquire a 10% stake in LG Chem to strengthen its own battery supply: report appeared initially on TESLARATI.

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