Tesla may partner with LG to produce its homegrown 4680 large-format cylindrical battery cells, according to a report from Reuters.
“Tesla has not yet agreed to a deal that would expand LG’s role in its supply chain beyond China,” the report said.
Tesla’s 4680 battery cells were developed to reduce production costs, improve battery performance and increase driving range. The automaker hopes to implement the new batteries across its offerings over the next few years.
The company has been manufacturing the 4680 battery cells at a factory in California, with intentions to also build the cells at new factories in Texas and Germany.
LG will reportedly build the 4680 cells at a new factory in the U.S. and will consider building another production line in Europe.
Reuters reported that LG has made samples of the 4680 cells, but will face technological hurdles to scale up production. The report said LG has not yet secured orders from Tesla.