LG Energy will supply 21700 batteries for Tesla's new Model Y. The battery cell capacity reaches 5300mah, which is a 6% increase from the previous 5000mah. This batch of batteries will be produced at LG Energy’s Nanjing factory and then shipped to Tesla’s Shanghai Gigafactory for assembly.

It is worth noting that not only the Model Y produced in China will use this battery, but the Model Y produced in the Berlin factory in Germany will also use the same battery pack. This is because Tesla does not have its own battery production facilities near the Berlin Gigafactory and needs to deploy battery packs from the Shanghai Gigafactory.

This battery is a ternary lithium battery (NCM battery) type and complies with the relevant regulations of the Ministry of Industry and Information Technology of China. LG Energy’s move not only increases battery capacity, but also optimizes Tesla’s global supply chain layout and production efficiency through production at the Nanjing factory and assembly at the Shanghai Gigafactory.

Tesla's Shanghai Gigafactory is one of the company's highest-capacity factories in the world, with an annual production capacity of more than 950,000 vehicles. By comparison, Gigafactory Berlin has an annual production capacity of 375,000 vehicles. The high production capacity of the Shanghai plant enables it to meet the needs of both the Chinese and European markets.

LG Energy supplying batteries to Tesla is nothing new. As early as 2020, LG Chem (the predecessor of LG Energy) has begun supplying batteries to Tesla's Chinese factory. This upgrade to the 5300mah 21700 battery shows LG Energy’s continued progress in battery technology.

For consumers, increased battery capacity means the Model Y may have a longer driving range. However, the specific range of battery life improvement still needs to wait for Tesla’s official announcement.

From an industry perspective, LG Energy's supply of new batteries to Tesla this time further consolidates its position in the global electric vehicle battery market. At the same time, this also reflects Tesla's strategy in supply chain diversification, which not only ensures the stability of battery supply, but also leverages the technical advantages of different suppliers.

At present, competition in the electric vehicle market is becoming increasingly fierce, and the advancement of battery technology has become the focus of major car companies. Tesla has achieved breakthroughs in battery performance through its cooperation with LG Energy, helping to maintain its competitive advantage in the market.

As the new Model Y is put into production one after another, the market is full of expectations for the performance of this model equipped with the new 21700 battery.