Tesla Met with Battery Material Companies During Visit to Korea Last Year

"At the Level of a Formal Meeting... No Specific Business Discussions"
Interpreted as a Preparatory Step for Independent Development of Electric Vehicle Batteries

Tesla CEO Elon Musk (right) is explaining the self-developed battery at Tesla Battery Day event on the 22nd (local time).

[Asia Economy Reporter Hwang Yoon-joo] It has been confirmed that Tesla visited South Korea last year to meet with electric vehicle battery material companies. This appears to have been preparation even before Tesla announced its intention to independently develop electric vehicle batteries at the 'Battery Day' event held on the 22nd (local time).

According to industry sources on the 27th, Tesla visited South Korea last year and met with battery material companies one after another. It is known that during these meetings, no specific business plans were exchanged, and the meetings were more of a formal introduction.

Earlier, Tesla CEO Elon Musk introduced Tesla's independently developed cylindrical battery '4680' at 'Battery Day.' Musk explained that the '4680' battery has five times the energy capacity and six times the power output compared to existing products, improving driving range by 16% while reducing the price to about half. Tesla plans to produce the 4680 battery at the Tesla Fremont automobile factory where the 'Battery Day' was held.

Industry insiders interpret this as Tesla indirectly formalizing its independent battery development and battery internalization. Tesla's visit to related companies in South Korea last year is also seen in the same context. For Tesla, an electric vehicle manufacturer, cooperation with material companies becomes crucial for independent battery development.

Domestic battery material companies include POSCO Chemical, EcoPro BM, and L&F. Among South Korean conglomerates, POSCO Chemical is the only one producing electric vehicle battery materials (cathode and anode materials). Since 2022, with an expected shortage in battery demand, the battery industry explains that the ability of battery companies and material suppliers to secure investment funds and expand production plants is important.

A representative of a battery material company said, "I understand that Tesla met not only with domestic battery material companies but also with overseas companies," adding, "Although they did not discuss independent battery development projects immediately, the fact that Tesla met directly with material companies itself confirms Tesla's intention to produce batteries."