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Tesla Reportedly Talking to Suppliers to Buy More Batteries

Tesla Model 3 1 photo
Photo: Tesla
Tesla Motors is looking for additional component suppliers for its cars. A report points the index finger at South Korea as the country where Tesla representatives traveled to meet executives of top automotive suppliers.
Apparently, Tesla Motors is talking to LG Chem, SK Innovation, and Samsung for a possible deal on lithium-ion battery cell production.

America’s only large-scale electric vehicle manufacturer is looking for new partners as orders for the Model 3 have made current suppliers insufficient for the company’s needs.

According to Korea Times, the source of the report, the guys at LG Chem might be at the top of Tesla’s preferences. The report also provides three reasons behind this claim - LG Chem has experience in the automotive battery field, as they supplied the batteries of the Chevrolet Volt, as well as lower prices and a little history with Tesla.

All of the reasons mentioned above would make an executive think twice about selecting another supplier as a new partner, as Tesla needs to count on its allies to be on time when delivering ordered components.

Tesla already has a deal with Panasonic on batteries, and the American company is in talks with two mining companies for the acquisition of lithium for its Gigafactory. Another deal signed by Tesla Motors recently designated the Koreans at Hankook Tires as the OEM supplier of tires for the new Model 3.

Another branch of LG, LG Display, has already signed a deal with Tesla to supply its OLED panels for the interior of the Model 3. The closest alternative to LG Chem would be Samsung SDI, which is known for manufacturing a cylindrical shaped “18650 battery cell,” a type of battery adopted by Tesla for its existing fleet.

The “18650 battery cell” refers to a rechargeable lithium-ion battery that has the shape of an AA battery, but is larger in every way, also having internal protection circuits and other particular characteristics.
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About the author: Sebastian Toma
Sebastian Toma profile photo

Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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