Behind the Panasonic/LG 'Snatch' Mass Production 4680 Battery

Around the Tesla 4680 battery order competition, LG Energy and Panasonic launched a new competition. Foreign media reported that LG Energy has begun to build a pilot production line for Tesla's 4680 battery. It is currently revamping some of its production lines at its Ochang plant, and the assembly and electroplating equipment has been installed, and it is expected to start operations as early as this year. LG Energy's goal is to complete the construction of the pilot production line earlier than Panasonic, so as to gain market opportunities in terms of competing for Tesla's 4680 battery orders. Behind LG Energy's plan to produce 4680 batteries for Tesla is that it will officially become Tesla's battery supplier in 2020, supplying 21700 high-nickel batteries for domestic Model 3 in batches, which will drive LG Energy's power lithium battery installed capacity to rise sharply. Previously, media reports stated that LG Energy signed a supply contract with Tesla to supply power lithium batteries for the domestic Model Y, and the agreement limited the scope of supply to Tesla's Shanghai plant. This means that LG Energy will become an important battery supplier for Tesla’s domestically produced Model Y, and it is expected to further increase its share of Tesla’s battery supply. Last September, Tesla announced the 4680 battery on 'Battery Day.' Musk once stated on this battery that its mass production goal is to reach 100GWh per year in 2022 and 3TWh per year in 2030. It is reported that Tesla produces this new type of battery at its pilot plant in Kato Road, Fremont, and plans to increase the annual output of this battery to 10GWh by the end of 2021. It is worth noting that although Tesla said that it will produce the battery itself, in order to achieve its mass production goals and ensure a stable battery supply, it still plans to purchase batteries from its battery suppliers and even cooperate in mass production of 4680 batteries. LG Energy is speeding up the construction of the 4680 battery pilot production line, with the goal of being the first to reach a cooperation with Tesla in mass production or supply of 4680 batteries. However, Panasonic is not worried in the face of LG Energy's steadily pressing. Foreign media reported that Panasonic President Tsuga Kazuhiro pointed out in a statement last year that Panasonic's Tesla 4680 battery production plan will start immediately after the 'Battery Day.' Tsuga Kazuhiro even said: “We have already started to develop a brand new 4680 car battery for Tesla in the United States. We will make battery samples in Japan and establish a manufacturing method. High reliability is one of our strengths. We don’t I am worried that Tesla will become a competitor (although Tesla is pushing for internal battery production plans).' It is reported that Panasonic has prepared a 4680 battery pilot production line for Tesla at the Suminoe Plant in Osaka, Japan. The goal is to be completed by 2022. Panasonic announced in February that it will mass-produce 4680 batteries at the US Super Battery Factory in the second half of the year. This means that Panasonic is still likely to maintain a competitive advantage in this 4680 battery order competition and take the lead in mass production and supply to Tesla, thereby consolidating its position in the Tesla battery supply chain. In fact, behind the mass production of LG Energy and Panasonic’s 4680 battery is the battle between the two head power lithium battery companies to further increase market share and meet rising market demand. On the one hand, Panasonic is Tesla's core battery supplier, ranking first in the world for installed power lithium batteries for many years. However, as market competition intensified and Tesla introduced two new suppliers, LG Energy and CATL, the proportion of Panasonic’s battery supply to Tesla has dropped significantly, and market competition pressure has surged. On the other hand, Tesla has set a TWh mass production target, which in turn will have a larger purchase demand for power lithium batteries. Panasonic and LG Energy will also compete fiercely around Tesla's battery supply requirements.