Photo: Lucid
The Lucid Air started its career with LG Energy Solution cells in the 2170 cylindrical form factor. That’s the same one Tesla and Panasonic created for the Model 3. On the other hand, LGES pouch cells were what the Hyundai Kona Electric and Chevrolet Bolt EV had when they started facing spontaneous fires. How all these things fit together in Lucid’s decision to buy cells from Panasonic Energy is something only the EV maker can answer.
What both companies decided to share is that the Lucid Air and the Lucid Gravity will have Panasonic cells. Initially, they will be made in Japan, but Lucid will start buying them from Panasonic’s new factory in De Soto, Kansas. The EV maker did not say if it will still purchase cells from LGES, but the announcement suggests that will not happen anymore.
Apart from the issues the Korean supplier faced with Hyundai and GM, Lucid may have decided to go with Panasonic to ensure it will produce all the cars it has committed to manufacturing in the next few years.
The EV maker has failed to meet its original production targets twice this year. First, it said it would make 20,000 in 2022. In February, it reduced that number to something between 12,000 and 14,000 EVs. When Lucid realized in August that this would still be unattainable, it cut that goal in half: 6,000 to 7,000 Air units in 2022. It is not clear how battery supply influenced that decision, but the new deal also makes us wonder if Lucid’s manufacturing hurdles could have to do with that.
The construction of the new Panasonic Energy factory in De Soto started in November 2022, but it is only expected to begin production by March 2025. That said, Lucid’s vehicles will start using Japanese cells. LGES has one independent battery factory in the U.S., more specifically in Holland, Michigan. However, it makes pouch cells there, which leads us to believe the cylindrical cells for the Lucid Air come from abroad. LGES planned to build one factory in Queen Creek, Arizona, but it said in December that it is reviewing the decision due to rising material costs. That may also have influenced Lucid’s decision to select a new supplier. Again, only Lucid could clarify that.
Apart from the issues the Korean supplier faced with Hyundai and GM, Lucid may have decided to go with Panasonic to ensure it will produce all the cars it has committed to manufacturing in the next few years.
The EV maker has failed to meet its original production targets twice this year. First, it said it would make 20,000 in 2022. In February, it reduced that number to something between 12,000 and 14,000 EVs. When Lucid realized in August that this would still be unattainable, it cut that goal in half: 6,000 to 7,000 Air units in 2022. It is not clear how battery supply influenced that decision, but the new deal also makes us wonder if Lucid’s manufacturing hurdles could have to do with that.
The construction of the new Panasonic Energy factory in De Soto started in November 2022, but it is only expected to begin production by March 2025. That said, Lucid’s vehicles will start using Japanese cells. LGES has one independent battery factory in the U.S., more specifically in Holland, Michigan. However, it makes pouch cells there, which leads us to believe the cylindrical cells for the Lucid Air come from abroad. LGES planned to build one factory in Queen Creek, Arizona, but it said in December that it is reviewing the decision due to rising material costs. That may also have influenced Lucid’s decision to select a new supplier. Again, only Lucid could clarify that.
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