LG Energy Solution has decided to utilize its new Arizona factory as the primary production hub for the cylindrical 46 Series battery. The company also unveiled detailed production plans for the budget-friendly product line, including the lithium-iron-phosphate (LFP) by 2026 and the lithium-manganese-iron-phosphate (LMFP) and manganese-rich batteries by 2027.
On Oct. 25, during LG Energy Solution’s Q3 earnings conference call, the company announced changes to its investment plans, emphasizing the production of the 46 mm diameter 46 Series battery, boasting an annual capacity of 36 GWh at its Arizona facility.
This past March, LG Energy Solution had announced its intentions to produce a “2170 cylindrical battery” (21 mm in diameter and 70 mm in height) with an annual output of 27 GWh in the same Arizona plant.
The 4680 battery, known as the “Tesla battery,” is a cylindrical battery measuring 46 mm in diameter and 80 mm in height. It’s predominantly used by Tesla and is considered to be the next-generation product due to its capacity being 5 times and output being 6 times greater than the previous 2170 battery, resulting in a 16% improvement in driving range. This announcement indicates a strengthening collaboration between LG Energy Solution and its major client, Tesla. The company plans to start mass production of the 4680 battery by the end of 2025, leveraging subsidies from the U.S. Inflation Reduction Act (IRA).
By ramping up the production capabilities for the 46 mm battery, cooperation with other automakers is also expected to strengthen. Lee Chang-sill, chief financial officer of LG Energy Solution, mentioned, “Besides the 4680, we are in the process of developing various other 46 series batteries.”
For the development of the 4680 battery, LG Energy Solution is using its Ochang plant as a mother factory to enhance its maturity. The CFO announced, “We are aiming to establish a production line within this year in Korea and are preparing to start production in the second half of next year.”
The company also shed light on its strategies related to the budget electric car market. The goal is to produce an LFP battery by 2026 and launch new products based on manganese-rich battery and LMFP by 2027, slightly adjusting its original plan of producing an electric vehicle LFP battery in 2025.
Furthermore, LG Energy Solution intends to start producing high-voltage mid-nickel products by 2025 and develop customized solutions for each client. The strategy is to secure the budget electric vehicle market beyond the premium market.
Lastly, LG Energy Solution emphasized its focus on the premium product, the high-nickel nickel-cobalt-manganese-aluminum (NCMA) battery. The company plans to increase the nickel ratio from the current high 80% range to over 90%. Enhancements will also be made in thermal management solutions for improved safety, and they intend to leverage high-capacity, high-efficiency silicon anode materials to reduce 0% to 80% charging times to under 15 minutes.