LG Energy Solution Nanjing Plant 9 Starts Production, Accelerating 2170 Battery Supply to Tesla

[CNMO Tech News] On October 23, according to multiple industry insiders, LG Energy Solution recently started operations at Nanjing Plant 9. The factory's manufacturing equipment was brought in several years ago, but formal mass production had not previously started; recent 2170 battery demand growth drove existing production lines to full capacity, and Plant 9 also entered mass production preparation. The industry generally believes that Tesla is the main supply target for LG Energy Solution's 2170 batteries, and the positive sales performance of Model Y is the direct reason for the increased utilization rate of the Nanjing factory.

LG Electronics

LG Energy Solution 46 Series and 2170 Cylindrical Batteries

LG Energy Solution also stated when releasing second-quarter results, benefiting from good sales of new electric vehicles by strategic clients, 2170 battery shipments remained strong. Including Plant 9, LG Energy Solution's Nanjing factory's cylindrical battery annual capacity is estimated to exceed 50GWh. Considering that its core business North American Energy Storage Systems (ESS) annual capacity will expand to 50GWh by the end of this year, this means the demand scale of 2170 cylindrical batteries has grown to a level comparable to North American ESS.

Samsung SDI, which also produces 2170 batteries, is also preparing for new investments. Samsung SDI has started constructing cylindrical Lithium Iron Phosphate (LFP) battery mass production equipment for 2170 specification Battery Backup Units (BBU) at Malaysia Plant 2, with the goal of achieving mass production in the second quarter of next year. Samsung SDI previously positioned the main demand areas for 2170 batteries as power tools, electric mobility, etc. Recently, with the surge in AI data center investments and expansion of BBU-related demand, the company began advancing product segmentation: in addition to high-power products based on ternary 2170 batteries, it separately launches products based on LFP batteries, to expand the market with safety and cost advantages. Demand growth also drove Samsung SDI's small battery utilization rate, increasing from 50% last year to 73% in the first half of this year.

Samsung SDI's 18650, 21700 Cylindrical Batteries

The industry also expects, 2170 battery specifications are standardized and size is smaller, installation space restrictions are relatively fewer, supply scope is expected to expand to more fields, robots and aerospace outside of electric vehicles and BBU are considered candidate directions. Regarding robots, LG Energy Solution stated earlier this year that it was negotiating product supply with 6 robot companies; Samsung SDI is also advancing cooperation with relevant companies such as Hyundai Motor Group Robot Lab. With the superposition of demand from electric vehicles, AI data centers, robots, etc., 2170 cylindrical batteries are evolving from a single vehicle product to a universal battery platform covering multiple high-growth tracks.