Battery maker LG Chem plans to triple manufacturing of cylindrical cells used primarily by Tesla, and is creating an improved model of that cell format, Reuters reported Wednesday.

LG Chem, which additionally provides cells to Common Motors, Hyundai, Lucid Motors, and the Volkswagen Group, mentioned it deliberate to extend manufacturing in response to rising demand, however didn’t present figures or a timeframe for tripling cylindrical-cell manufacturing, in response to the report. Lucid and Rivian are each planning to make use of cylindrical cells within the 2170 format the Mannequin 3 and Mannequin Y at present use.

The South Korean agency additionally mentioned it was creating “new form-factor” cylindrical cells that may obtain a fivefold enhance in power density, and sixfold enhance in energy output, with out elaborating, the report mentioned.

Cylindrical cells from each LG Chem and Chinese language agency CATL are utilized in Tesla electrical vehicles made in China for native sale. Panasonic nonetheless provides all cells for Tesla fashions offered in the US.

2020 Tesla Model 3

2020 Tesla Mannequin 3

Tesla confirmed in July that its Shanghai manufacturing facility would make some Mannequin 3 sedans with lithium iron phosphate (LFP) cells with a purpose to liberate extra energy-dense nickel-cobalt-aluminum cells for the Semi, which is scheduled to start deliveries in 2021.

LG Chem plans to spin off its battery enterprise right into a separate company entity—LG Vitality Resolution—in December. A September report claimed Tesla was looking to buy a stake in that new entity with a purpose to safe a steady future battery provide.

Which will grow to be extra of a precedence for Tesla because it seems to proceed increasing passenger-car manufacturing, whereas including the Semi and Cybertruck to the combination.

In the meantime, it is not totally clear whether or not the brand new format LG Chem is referring to is the 4680 format Tesla plans to make—and probably additionally provide to different automakers.