LG Energy Solution (LGES) recently said that they are working to diversify their cylindrical battery lineup and are developing 4680 batteries.
The battery manufacturer did not disclose any customer-related issues, particularly with respect to the 4680 battery. However, the South Korean battery supplier is Tesla's confirmed partner.
LGES reported quarterly revenue of 4.44 trillion won ($3 billion), up 10.2 percent from the previous quarter. The company's quarterly revenue growth was driven by strong demand for soft pack batteries for electric vehicles and cylindrical batteries, as well as small soft pack batteries for IT equipment. The company also reported full-year revenue of 17.85 trillion won ($14 billion) in 2021, up 42 percent from 2020.
LGES expects its revenue to reach 19.2 trillion won ($16 billion) by 2022, up 8 percent year-on-year, in part due to steady growth in the electric vehicle market. This year, the battery supplier plans to steadily expand its production capacity. To prepare partner automakers for their new EV lineup, LGES will invest 6.3 trillion won ($5 billion) in capital expenditures, up 58 percent from 2021.
LGES Representative Kwon Wing So said: "LGES will stand out by prioritizing quality based and ensuring profitability. "In the longer term, LGES will continue to advance bold investment initiatives. We believe that our business model for the future will surely help us lead the industry. ”
On Tesla's earnings call for the fourth quarter and full year 2021, Tesla said all of its partners and suppliers are developing batteries in its 4680 form factor.
Drew Baglino, Tesla's senior vice president of powertrain and energy engineering, said on the last earnings call: "In terms of 4680 as a form factor, yes, we've worked with many of our partners or suppliers on form factors, and they're all working on this issue. And, you know, the way they look at it is the way we look at it, it can drive the basic cost efficiency in production and ultimately the design of the battery itself to reduce the cost of the battery. ”
Bagrino also said that for the full year 2021, Tesla will focus on increasing the battery supply of its internal 4680. He added that sales from suppliers exceed tesla's other factory limits. The Tesla senior vice president of power systems and energy engineering said that based on information he received on the fourth quarter 2021 earnings call, the 4680 battery is not a limit to the company's 2022 sales plan.
Tesla believes the first cars with 4680 batteries are likely to be delivered this quarter. The company's Gigafactory in Texas is already building the Model Y with Tesla's structural battery packs and 4680 batteries.