Tesla plans to acquire a stake in LG Chemical Co., Ltd. These supply chain manufacturers are expected to benefit.

SMM: according to the Korea Times, citing anonymous banking sources, Tesla is seeking to acquire up to 10 per cent of LG Energy Solution. The latter is a wholly owned subsidiary of LG, which is fully owned by LG Chemical.

LG Chemical plans to build the new company into a "world-class energy solution provider" focused on the battery business, providing the production and sale of battery materials, battery units, battery packs, as well as battery repair, leasing, charging, recycling and other services covering the battery life cycle.

According to the LG Chemical website, the company is the most representative chemical company in South Korea, covering petrochemistry, batteries, cutting-edge materials and life sciences.

If the news is true, Tesla will further reduce his battery procurement costs by establishing diversified battery procurement channels after the acquisition. At present, Tesla's three major battery suppliers are Panasonic, LG Chemical and Ningde era.

Industry insiders say that as electric vehicle sales increase and car companies are eager to ensure battery supply, more and more car companies are buying shares in battery companies or choosing to form joint ventures with battery companies, which will also benefit the relevant supply chain.

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Enjie Co., Ltd.: subsidiary Shanghai Enjie is mainly engaged in the research, development and production of lithium battery separator. The company's main overseas customers include LG Chemical.

Xiang Fenghua: said on the interactive platform that the products supplied by the company were applied to the Tesla Shanghai factory project by LG Chemistry and became the indirect supplier of Tesla Shanghai factory. LG Chemical is the company's largest customer in the first half of the year.

Pu Tailai: according to the interactive platform, the direct suppliers of Tesla in the domestic market are LG Chemistry and Ningde Times, both of which are company customers.

Huayou Cobalt Industry: the company established Huajin New Energy Materials (Quzhou) Co., Ltd. and Leyou New Energy Materials (Wuxi) Co., Ltd. as a joint venture with LG Chemical to build ternary precursors and cathode materials projects.

Liba shares: said in the interactive platform, the company's downstream customers cover LG.