5000mAh to 5300mAh——6% Performance Boost! LG Energy Supply 21700 Battery for New Tesla Model Y

LG Energy will supply 21700 battery cells for Tesla's new Model Y, with a battery capacity of 5300mAh, a 6% increase over the previous 5000mAh. This improvement will significantly enhance the vehicle's range and performance. The batteries will be produced at LG Energy's Nanjing factory and then shipped to Tesla's Shanghai Gigafactory for assembly.

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Notably, both the Model Y produced in China and the one made at Tesla's Berlin factory will be equipped with the same 21700 battery. Tesla relies on the Shanghai Gigafactory for its battery packs since it does not yet have a battery production facility near the Berlin Gigafactory.

Battery Technology and Production Efficiency

The 21700 battery is a ternary lithium (NCM) type, complying with the relevant regulations of China’s Ministry of Industry and Information Technology. By sourcing this battery, LG Energy not only boosts capacity but also optimizes Tesla’s global supply chain, with production taking place at the Nanjing factory and assembly at the Shanghai Gigafactory.

Tesla's Shanghai Gigafactory is among the company’s largest, with an annual production capacity of over 950,000 vehicles. In contrast, the Berlin Gigafactory can produce 375,000 vehicles annually. The Shanghai factory's high capacity allows it to meet the needs of both the Chinese and European markets.

Strengthening Global Market Position

LG Energy’s partnership with Tesla is not new; since 2020, LG Chem (the predecessor of LG Energy) has been supplying batteries to Tesla’s Chinese factory. The upgrade to the 5300mAh 21700 battery demonstrates LG Energy’s ongoing advancements in battery technology.

For consumers, the increased battery capacity suggests the Model Y could have a longer driving range. However, Tesla’s official announcement will confirm the exact improvement in range.

From an industry standpoint, LG Energy’s supply of new batteries strengthens its position in the global EV battery market. It also underscores Tesla's strategy of diversifying its supply chain, ensuring a stable battery supply while leveraging the technical advantages of various suppliers.

As the electric vehicle market becomes more competitive, battery technology remains a critical focus. Tesla's collaboration with LG Energy has led to advancements in battery performance, helping Tesla maintain a competitive edge.

With the new Model Y rolling out, the market eagerly awaits to see how this model, equipped with the 21700 battery, will perform.


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