LG Energy Solution Expands Tesla Battery Production at Nanjing Plant
Company prepares to activate a new cylindrical battery line as demand from Tesla continues to increase
LG Energy Solution is expanding production of cylindrical batteries at its manufacturing complex in Nanjing, China, supported by rising demand for Tesla electric vehicles, including the Model Y.
According to industry sources on July 9, LG Energy Solution is preparing to begin operating a new cylindrical battery production line at its Nanjing facility to meet growing orders from Tesla. The company has already been running its existing cylindrical battery lines at full capacity after steadily increasing utilization since late 2025.
Rechargeable batteries are generally produced in three form factors: cylindrical, pouch and prismatic. LG Energy Solution manufactures both cylindrical and pouch batteries at its production facilities in China.
Among LG Energy Solution’s three manufacturing subsidiaries in China—LGESNJ, LGESNA and LGESNB—LGESNJ is responsible for cylindrical battery production. The subsidiary operates nine factories across five sites in Nanjing.
An industry source said,
Staffing for the new cylindrical battery production line at LGESNJ’s Plant 9 has been completed, and employees are expected to be assigned around July 20,
“Although Plant 9 was completed two to three years ago, this will be the first time it officially begins production.”
LG Energy Solution plans to bring two newly installed cylindrical battery production lines at Plant 9 into operation during the second half of this year before adding additional lines in subsequent phases. Each production line has annual capacity of approximately 2 gigawatt-hours (GWh), with total capacity expected to expand into the double-digit GWh range as further investment proceeds.
An LG Energy Solution spokesperson said,
A growing market for cylindrical batteries is driving us to utilize our existing manufacturing facilities,
“We cannot comment on specific customers.”
The new production lines at Plant 9 have been modeled after Plant 6, the company’s most technologically advanced cylindrical battery facility within LGESNJ. Production planning, equipment layout and manufacturing standards were all benchmarked against Plant 6, which began operations in 2019. LGESNJ has total annual cylindrical battery production capacity of approximately 50 GWh, with Plant 6 accounting for around 30 GWh. Batteries produced there are supplied to Tesla’s Shanghai Gigafactory.
LG Energy Solution has supplied batteries for higher-end versions of the Tesla Model 3 and Model Y, including Long Range variants. Its batteries are also used in the rear-wheel-drive (RWD) version of the refreshed Model 3 introduced in 2025 and the six-seat Model Y L long-wheelbase sport utility vehicle. Vehicles produced at Tesla’s Shanghai Gigafactory are exported to markets including South Korea, Japan, Australia and Europe.
Tesla’s Shanghai Gigafactory has annual production capacity exceeding 950,000 Model 3 and Model Y vehicles, making it the company’s largest manufacturing site. By comparison, the Berlin Gigafactory has annual capacity of 375,000 Model Ys, the Texas Gigafactory 250,000 Model Ys, and the Fremont plant 550,000 Model 3 and Model Y vehicles combined.
According to the China Passenger Car Association (CPCA), Tesla sold 378,858 Shanghai-built vehicles during the first five months of this year, up 29% from 292,875 units during the same period last year. Tesla has also continued to set sales records in South Korea. The Model Y became the country’s best-selling passenger vehicle in May—the first imported model to outsell all domestic passenger cars in a single month. The Model Y L, which was launched in South Korea in April, became the country’s best-selling imported vehicle in June, just two months after its debut. Rising Tesla sales are expected to support additional battery shipments from LG Energy Solution.
On July 7, LG Energy Solution reported preliminary second-quarter results showing revenue of 7.5602 trillion won and operating profit of 113.3 billion won. Revenue increased 24.8% from a year earlier, while operating profit declined 77%. Analysts said higher shipments of cylindrical batteries driven by Tesla demand supported revenue growth, while conversion of North American energy storage system (ESS) battery production lines and costs associated with improving utilization weighed on profitability.
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LG Energy Solution Expands Tesla Battery Production at Nanjing Plant, source
