South Korea's LG Chem has signed on with Chinese supplier Lead China to be supplied with key manufacturing equipment at its battery plant in Nanjing, according to industry sources on Jan. 2.
The decision came based on relations with the Chinese government and its ties with local carmakers, the sources said. Until now, LG Chem used equipment from mostly local supplies such as DA Technology. But the firm decided to diversify its supplier portfolio as more Chinese manufacturers honed their technological edge.
The winding equipment for 18650 cylindrical batteries supplied by Lead China can later on be used for Tesla EVs – LG Chem currently supplies 21700 cylindrical batteries to the US-based carmaker. “This means Lead China is also capable of churning out equipment for manufacturing 21700 type batteries,” explained one market watcher.
Lead China was established in 2002 in Wuxi. Its largest client is CATL. From battery material mixing to formation, the company is capable of providing turnkey services when it comes to battery manufacturing. Its main capacity is square and cylindrical-shaped batteries.
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