Tesla looking to buy Stake in LG chemicals

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A recent report from the Korea Times mentions that Tesla is looking to acquire the stakes in LG chemicals and forms LG energy solutions told by the bank sector sources on Monday. 

"Tesla is looking to acquire a stake in LG Energy Solution. Specifically, Tesla is said to be exploring taking up to a 10 percent stake in LG Energy Solution," one source said on condition of anonymity as he wasn't authorized to officially speak to the media.

current battery supplier for the Tesla is Panasonic and LG chemicals, LG chem is also a leading supplier for General Motor's. as per the LG chem its decision to spin off its battery business in December was based on its judgment that this is the "right time" to do so, as the battery industry is growing rapidly and structural profits in the electric vehicle (EV) battery sector are being made. 

Direct investment of Tesla will improve the quality of battery packs, and purchase qualified for their electric vehicles. Still the Tesla would rely on the cell manufacturers for innovation perspective and improving the charging technology

though it is too early to predict that tesla has an actual plan to acquire the stake in LG chem, and the percent of Stake is not quite clear well.

According to the latest reports issued by Bernstein Research, a top-tier independent investment research firm, Tesla is trying to find a sweet spot between battery size and energy capacity. It aims to increase production of larger cell sizes. 

The emphasis will move from the 18650 Li-ion format to higher capacities ― 21700 and 46800 ― in the future. The new 46800 cell provides five times more energy and 16 percent longer range. The 46800 cells are easier to manufacture with fewer parts and have a shorter electrical path length to reduce heat.

At present, Tesla and Japan's Panasonic operate Gigafactory, a joint venture electric vehicle assembly and battery production plant in the U.S.. But by diversifying battery sourcing channels, Tesla could cut its battery procurement costs. And it bears relevance that Musk announced last week that Tesla will bring a $25,000 passenger EV to market in the next three years. 

The automaker has already begun sourcing lithium iron phosphate (LFP) batteries for the Tesla model 3 in China as a way to free up more energy-dense nickel-cobalt aluminum cells for the Tesla Semi.