Tesla Looks Towards South Korea to Extend its Battery-Supply Chain

The American electric car maker looks towards Samsung, LG Chem and Panasonic Corporation to supply it with batteries.

Often, Tesla Motors stated the Model 3 worth $35,000 used to depend upon the organization attaining its battery cost cutting objectives at the under-construction Gigafactory. In recent times, officials of Tesla stated the facility must no longer be viewed as a factor constraining the supply chain of Model 3 and that the American electric car maker is confident that it is equipped with the capacity to being manufacturing battery cells.

The facility was initially presented as one with a full yearly output capacity of 35 gig watts per hour of battery cells as well as 50 gig watts per hour of battery packs-with the different cells being imported from other makers- such as the automaker’s exclusive partner partner Panasonic Corporation, but also a number of other potential cells suppliers.

Panasonic delivers small rounded batteries, which are more affordable and more easy to produce in huge quantities. Now it seems like the automaker is looking towards South Korea for the diversification of its battery cell supply chain for Tesla Model 3. Korea Times has reported that the electrically power car manufacturer is approaching SK Innovation, Samsung SDI as well as LG Chem under its plan to diversify its batter-purchasing channels beyond Panasonic.

LG Chem will probably bring business from Tesla due to its good pricing, output commitment as well as on- time delivery. A solid collaboration with the world’s biggest LCD panel manufacturer LG Display also could help LG Chem. The organization earlier delivered batteries for Tesla Roadster model, though the quantity it delivered as “small”. In recent times,executives of the California-based organization visited important research centers at SK Innovation, Samsung SDI and LG Chem, having working-level meetings with every one of them.

Spokesman of LG Chem stated the world’s biggest battery supplier has no formal comment regarding its business with definite clients. Samsung SDI stated it is not authorized to deny or confirm business contracts with its main clients. SK Innovation wasn’t available for sharing its views. The Model 3 is more reliable, cleaner, faster and has better management: whereas it is offered at a starting price of $35,000, more affordable than a larger number of competing gasoline powered vehicles.

Because of those reasons, officials and market analysts state the Model 3 “should be a game changer” at an inexpensive price point. They stated the mass-market electric car will drive the “third wave of adoption” in the electric automobile sector. This third wave will ultimately challenge the majority “mainstream and economically attractive” niche and it is been expected the other organizations will probably include the GM Chevy Bolt, which must help propel electric vehicles to enter the mass-market.

The automaker aims to manufacture up to half a million EVs by 2018. The affordable EV will be offered at the earliest in the next year. The EV maker has got 400,000 pre-orders.

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