LG Energy Solution starts production at Nanjing plant to boost 2170 battery supply

LG Energy Solution has recently commenced operations at its Plant 9 in Nanjing, China, to meet rising demand for 2170 cylindrical batteries. The move is driven by strong sales of the Tesla Model Y, which is believed to be the primary customer for these cells. With the addition of Plant 9, the annual capacity for cylindrical batteries at the Nanjing site is estimated to exceed 50GWh.

Industry trends indicate that 2170 batteries are evolving from specialized automotive components into a versatile platform for high-growth sectors. Beyond electric vehicles, demand is surging from AI data center backup units (BBU), robotics, and aerospace. LG Energy Solution has reportedly been in discussions with six robotics companies regarding product supply.

Competitor Samsung SDI is also expanding its footprint. The company is preparing mass production of 2170-specification lithium iron phosphate (LFP) batteries for BBU applications at its second plant in Malaysia, targeting a second-quarter launch next year. Samsung SDI has also seen its small battery utilization rate rise to 73% in the first half of this year.