The Korea Times close
National
  • Politics
  • Diplomacy
  • Defense
  • Labor & Environment
  • Law & Crime
  • Health & Welfare
  • Embassy
  • Seoul & Provinces
  • Education
  • Foreign Communities
  • Obituaries
Biz & Tech
  • Auto
  • IT
  • Game
  • Manufacturing
  • Retail & Food
  • Energy
  • Construction
  • Airlines
Finance
  • Policies
  • Economy
  • Markets
  • Banks
  • Non-banks
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Lifestyle
  • Arts
  • Books
  • Travel & Cuisine
  • Trend
  • Fashion
  • Around Town
  • Fortune Telling
Entertainment
  • K-pop
  • K-dramas & Shows
  • Movies
  • Music
  • Performances
  • Asia Model Festival
Sports
  • Football
  • Golf
  • Baseball
  • Other Sports
World
  • Asia Pacific
  • Americas
  • Europe & Africa
  • SCMP
Video
  • On the Spot
  • Feature
  • News
Photos
  • Photo News
  • Darkroom
Community
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Biz & Tech
  • Auto
  • IT
  • Game
  • Manufacturing
  • Retail & Food
  • Energy
  • Construction
  • Airlines
Sat, April 17, 2021 | 01:16
Tesla approaches LG, Samsung for Model 3 batteries
Posted : 2016-05-17 16:27
Updated : 2016-05-17 16:48
Mail
Print Preview
Font Size Up
Font Size Down
By Kim Yoo-chul

Tesla Motors is approaching LG Chem, Samsung SDI and SK Innovation as part of its strategy to diversify its battery-sourcing channels beyond Japan's Panasonic.

LG Chem is expected to win the Tesla business thanks to its output commitment, good pricing and on-time delivery. A solid partnership with LG Display could also help LG Chem. The company previously supplied batteries for Tesla's Roadster model, though the volume it shipped was "small."

"Tesla intends to use more Korean technology on its Model 3. It decided to use tires manufactured by Hankook Tire and LG Display will possibly be supplying its OLED panels for the automotive systems. Additionally, Tesla is testing the manufacturing capability and production of LG Chem, Samsung SDI and SK Innovation," said an official, Tuesday.

Tesla executives recently visited key research centers at LG Chem, Samsung SDI and SK Innovation, holding working-level meetings with all of them.

An LG Chem spokesman said the largest battery supplier in the world has no official comment about its business with specific clients. Samsung SDI said it has no authority either to confirm or to deny business deals with its major clients. SK Innovation wasn't available for comment.

The Model 3 electric vehicle is faster, cleaner, more reliable and has better handling; while its entry price will start at around $35,000, cheaper than many competing gas powered cars.

Because of those factors, market analysts and officials say that the Model 3 "should be a game changer" at an affordable price point.

They said the Model 3 will drive the "third wave of adoption" in the electric vehicle industry. This third wave will finally attack the majority "mainstream and economically attractive" segment and it's been expected that others will follow including the GM Chevy Bolt, which should help propel EVs to the real tipping point of mass adoption.

"This is why LG Chem, Samsung SDI and SK Innovation all are keenly interested in boosting their tie-up with Tesla. The three Korean battery manufacturers can't afford to lose the new business given the Model 3's impressive initial responses from customers," said another official.

Tesla plans to produce up to 500,000 electric vehicles by 2018. The Model 3 will be available in 2017, at the earliest. The company has received 400,000 pre-orders.

Currently, Japan's Panasonic is the exclusive battery partner with Tesla, supplying small-sized rounded batteries as these are more economical and easier to mass produce.

Both LG Chem and Samsung SDI are also manufacturing round batteries.

Although LG is pushing the pouch-type battery as its mainstream product with Samsung SDI focusing on the rectangular-type battery, sources who are involved with the issue say Tesla may use LG and Samsung's mainstream technologies to keep adequate inventory levels as it's been widely expected the supply for the Model 3 will remain tight.

"The Model 3 is aiming for a base price of $35,000, which after subsidies would be $28,000 in the United States (or $25,000 in California), this puts it up against the far bigger entry level luxury sedan segment such as the BMW 3-series (at $33,000-$38,000) before subsidies, or mainstream sedans such as the Honda Accord ($22,000-$34,000) after subsidies," Bernstein Research's senior analyst Max Warburton said.


Emailyckim@ktimes.com Article ListMore articles by this reporter
Tesla to open dealerships in Hanam, Gangnam
The U.S.-based electric car manufacturer Tesla Motors is expected to open its first Korean dealerships in Gangnam, southern Seoul, and a new shopping mall in Hanam, Gyeonggi Provin...









 
LG
 
  • Delivery workers refuse door-to-door service following residents' unilateral action
  • Debate heats up over Navy's proposal to develop light aircraft carrier
  • North Korea slams Japan over decision to release contaminated Fukushima water
  • Citibank to exit retail banking in 13 markets including Korea
  • Biden, Moon to hold in-person summit in Washington next month: White House
  • Yellow dust storm from China, Mongolia heading towards Korea
  • Lotte Group to withdraw food business from Southeast Asia
  • Local governments propose their own COVID-19 measures
  • 7 years after Sewol ferry disaster, harrowing losses still remembered
  • Kim Boo-kyum, former four-term lawmaker, nominated as Korea's new prime minister
  • 'Hospital Playlist' Season 2 to air on June 17 'Hospital Playlist' Season 2 to air on June 17
  • Abrupt ending of 'Taste of Wife' represents loss of trust in reality TV shows Abrupt ending of 'Taste of Wife' represents loss of trust in reality TV shows
  • Ji Chang-wook to take lead role in new Netflix series 'The Sound of Magic' Ji Chang-wook to take lead role in new Netflix series 'The Sound of Magic'
  • Kim Myung-min returns to small-screen as professor in JTBC's 'Law School' Kim Myung-min returns to small-screen as professor in JTBC's 'Law School'
  • [INTERVIEW] Actor Um Tae-goo has many faces [INTERVIEW] Actor Um Tae-goo has many faces
DARKROOM
  • Ending 'Endless War' [PHOTOS]

    Ending 'Endless War' [PHOTOS]

  • Locust outbreak

    Locust outbreak

  • Death toll rises as protests continue in Myanmar

    Death toll rises as protests continue in Myanmar

  • Say 'NO' to racism (Part 2)

    Say 'NO' to racism (Part 2)

  • Say 'NO' to racism (Part 1)

    Say 'NO' to racism (Part 1)

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group