Tesla requests carbon emission data from LG Chem
LG has been caught off guard by the demand
Tesla has requested LG Chem handover carbon emission data from its battery production, TheElec has confirmed.
The US electric vehicle (EV) has said it wanted sustainable production and asked the South Korean battery maker to send over its carbon emission rate before supplying its batteries, people familiar with the matter said.
Tesla’s aim with the data it to likely to promote EVs as more eco-friendly compared to conventional diesel cars amid recent allegations made the two had similar carbon emission footprints.
LG Chem was caught off guard by the request, the people said, as it will take considerable time to collect the data Tesla has requested.
The company will need to not only show that it is using RE100 (Renewable Energy 100) for production but also collect carbon emission rate from the raw materials it uses for battery production. It will have to collect the emission data from its subcontractors and materials providers.
LG Chem has already begin working to collect the data, starting with the basic stages of battery production, the people said.
South Korean companies have shown little interest in environmental issues until now, one of the people said. As EV’s main appeal is being eco-friendly, carbon emission rate and emission footprint is an important marketing factor, hence the request, they said.
For example, Northvolt’s decision to build its factory in Sweden has a lot to do with carbon emission rate. It has told its subcontractors that it was building its factory in Sweden minimize carbon emission rate.
European car makers considered carbon emission rate to be the second most important factor after price to appeal to consumers, the people said, and was requesting such data from all its subcontractors.
LG Chem has been supplying Tesla with its circular batteries since the second half of last year. Most of the supply has been delivered from its factory in Nanjing, but the US EV company has recently requested more supplies. LG Chem is reorganizing its Ochang factory to handle the expanded orders from Tesla.