Tesla's Battery Day Just a Week Away
With Tesla's Battery Day just a week away, tension is rising among Korean battery producers.
Tesla will take the wraps off its new electric vehicle (EV) battery technology on Sept. 22 (local time). The three major Korean battery makers, who account for one-third of the global EV battery market, say that they are concerned and at the same time, have some expectations about Tesla’s new technology.
The core of Tesla's Battery Day is the Roadrunner Project, a blueprint for producing batteries. Industry insiders expect the Battery Day event to present the status of this project, which is intended to reduce costs, improve energy density and enhance durability, and outline future battery production strategies. The largest strength of Tesla, the world's No. 1 EV maker, is its vertical integration of semiconductors, electronic control systems and body hardware used in EVs.
However, Tesla has been relying on external vendors for batteries. The possibility of Tesla’s mass production and commercialization of all-solid batteries has been steadily raised since its acquisition of Maxwell, a secondary battery-related company. However, a prevailing view in the market is that it is still premature for Tesla to produce batteries on its own in light of the technical challenges. Some experts speculate that Tesla may announce new technologies for lithium ion phosphate (LFP) batteries in cooperation with Chinese battery maker CATL.
While Korea's three major battery makers are concerned about the possibility of Tesla's full-fledged entry into the battery market, they are also expecting positive effects from it in terms of battery market expansion.
"As Tesla triggered an EV boom, we believe that an announcement of its entry into the battery market will contribute to expanding the market once again," said an industry analyst. "If Tesla makes its own batteries, it will take some market share from the Korean battery makers, but at the same time it will also promote competition for new technologies among battery companies."
"Some analysts speculate that Tesla will unveil innovative technologies that are more advanced than those of its competitors, it will not be easy for Tesla to catch up with technologies that battery companies have accumulated for decades at once." another industry insider said.