LG Energy Solution (LG Ensol) is set to significantly boost production of its next-generation 4680 cylindrical battery, a critical component for Tesla’s electric vehicles (EVs), starting in June or July 2025, reports the Korean newsoutlet Dealsite. This ramp-up at its Ochang Plant in South Korea marks a pivotal step for LG Ensol to meet Tesla’s growing demand, signaling a rebound in the EV battery market.

Next-Generation 4680 Battery Technology

The 4680 battery, named for its 46mm diameter and 80mm height, offers five times the capacity and six times the output of the older 2170 battery, enabling longer EV ranges and faster charging. LG Ensol, the first global battery maker to establish a 46-series mass production system, has been running pilot production at its Chungbok Ochang Plant.

An industry insider noted, “LG Ensol told its partners that it would ramp up the 4680 battery around June or July and that the volume would increase significantly,” highlighting the scale of this transition.

This battery’s enhanced performance is vital for Tesla’s vehicles, such as the Cybertruck and next-generation models, which require high-capacity cells to achieve competitive range and power. The ramp-up aligns with Tesla’s push to scale production while reducing costs, potentially lowering EV prices for consumers.

Industry Context and Demand Dynamics

LG Ensol’s production increase follows a period of caution due to a temporary dip in EV demand, often called the “EV chasm,” and Tesla’s fluctuating order patterns. Lee Chang-sil, LG Ensol’s CFO, emphasized a measured approach in January, stating, “We will not rush the ramp-up and will monitor the demand situation.” The decision to accelerate now suggests Tesla has signaled stronger demand, likely driven by new vehicle launches or expanded production goals.

The ramp-up involves coordinating with material suppliers, who were instructed months in advance to prepare for increased output. This lead time underscores the complexity of scaling high-performance battery production, which requires precision in sourcing and manufacturing.

Economic and Operational Impacts

LG Ensol’s financial outlook is poised to improve with this production surge. In Q1 2025, the company reported an operating profit of approximately $286 million (374.7 billion won), but excluding U.S. tax credits, it faced a $63 million (83 billion won) operating loss. The 4680 ramp-up could create a new revenue stream by late 2025, boosting profitability. An LG Ensol IR official confirmed, “We are currently producing 4680 batteries on a pilot line scale, and the goal is to ramp up in the third quarter,” adding that production will meet Tesla’s specifications.

For the EV industry, LG Ensol’s move strengthens Tesla’s supply chain, reducing reliance on other suppliers like Panasonic. This could stabilize battery availability, helping Tesla meet its ambitious 3 terawatt-hour production target by 2030. For consumers, increased supply may lead to more affordable EVs as economies of scale drive down costs.

Blick in die Zukunft

LG Ensol’s 4680 battery ramp-up, starting in June 2025, positions the company as a key player in the EV revolution. By addressing Tesla’s needs and navigating market challenges, LG Ensol is paving the way for enhanced EV performance and broader adoption. As an official reportedly stated, “The ramp-up will be an important turning point for LG Ensol as well,” signaling optimism for both the company and the EV sector.

Photo courtesy of LG Energy Solution