Photo: TED via YouTube
Elon Musk had a video call with South Korean president Yoon Suk-yeol, discussing future cooperation with Hyundai-Kia’s home country. One of the key takeaways of the conversation was that South Korea is one of the top candidates for Tesla’s future gigafactory in Asia.
Tesla has been growing at a neck-breaking pace in the past years, expanding its production capacity at existing factories and building new facilities in Germany and Texas. At the end of Q3, Tesla had enough installed manufacturing capacity to produce 2 million electric vehicles. This would further expand as Giga Berlin and Giga Texas gradually ramp up production to their planned capacity. This has led to a decrease in delivery times, which made some analysts warn of a drop in demand for Tesla EVs.
Tesla denied this is the case and is apparently in the process of further expanding its production capacity with a new gigafactory in Asia. The exact location has not been pinpointed yet, but recent discussions between Elon Musk and the South Korean president suggest the next Tesla gigafactory will be in the Korean peninsula. According to South Korea’s presidential office, Musk said that the country was among its top candidate locations for a factory it plans to build in Asia.
Tesla is poised to step up cooperation with South Korean companies on supply chains, and president Yoon asked Musk to consider building a factory in the country. Musk’s reply was diplomatic, saying he would consider the proposal and decide after reviewing investment conditions in other countries. This would include labor quality, technology level, and production infrastructure.
“We expect to buy components worth more than $10 billion from South Korean firms in 2023 as we significantly expand supply chain cooperation with South Korean companies,” Yoon’s office quoted Musk as saying, according to Reuters.
South Korea wants Elon Musk to invest in the country so badly, even as Tesla braces for a criminal trial in South Korea over the safety of its cars. Yoon was straightforward about his will to reform excessive regulations that hindered investment by global tech companies. On the other hand, Tesla wants South Korean companies like LG Chem and SK Innovation to supply its factories in the U.S. This should help Tesla comply with the IRA requirements for raw material sourcing.
Tesla is considering building a new gigafactory in Asia, with Indonesia, India, and other countries courting Musk to win Tesla’s big investment. South Korea has clear advantages as home to some of the most important technology companies working in the EV and battery field. On the other hand, labor costs are among the highest in the region, which might work against a decision to build the next Tesla gigafactory in the peninsula.
Tesla denied this is the case and is apparently in the process of further expanding its production capacity with a new gigafactory in Asia. The exact location has not been pinpointed yet, but recent discussions between Elon Musk and the South Korean president suggest the next Tesla gigafactory will be in the Korean peninsula. According to South Korea’s presidential office, Musk said that the country was among its top candidate locations for a factory it plans to build in Asia.
Tesla is poised to step up cooperation with South Korean companies on supply chains, and president Yoon asked Musk to consider building a factory in the country. Musk’s reply was diplomatic, saying he would consider the proposal and decide after reviewing investment conditions in other countries. This would include labor quality, technology level, and production infrastructure.
“We expect to buy components worth more than $10 billion from South Korean firms in 2023 as we significantly expand supply chain cooperation with South Korean companies,” Yoon’s office quoted Musk as saying, according to Reuters.
South Korea wants Elon Musk to invest in the country so badly, even as Tesla braces for a criminal trial in South Korea over the safety of its cars. Yoon was straightforward about his will to reform excessive regulations that hindered investment by global tech companies. On the other hand, Tesla wants South Korean companies like LG Chem and SK Innovation to supply its factories in the U.S. This should help Tesla comply with the IRA requirements for raw material sourcing.
Tesla is considering building a new gigafactory in Asia, with Indonesia, India, and other countries courting Musk to win Tesla’s big investment. South Korea has clear advantages as home to some of the most important technology companies working in the EV and battery field. On the other hand, labor costs are among the highest in the region, which might work against a decision to build the next Tesla gigafactory in the peninsula.
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