FYI: LG Energy Solution has initiated worker transfers to its Ochang Factory in preparation for the production of advanced 4680 battery cells, hinting at a strategic move to meet Tesla’s anticipated demand.
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# LG Energy Shift Workers to Ochang Factory as 4680 Battery Production Nears
In a strategic shift, LG Energy Solution is reallocating employees to its Ochang Factory to gear up for the production of 4680 battery cells, which are speculated to be supplied to Tesla. A recent report from South Korea highlights the company’s preparations as they move closer to starting mass production.
## Worker Reallocations at Ochang
Recent disclosures indicate that on the 16th of this month, LG Energy Solution issued a notice inviting applications for the transfer of 102 employees to the Ochang Factory. This move follows an earlier shift in the latter half of 2023, where 288 personnel were also transferred to support the same facility.
Employees who accept the transfer will be engaged in the production and pilot testing of the new 4680 cylindrical batteries. This reallocation underscores LG Energy’s commitment to boosting its production capabilities ahead of the anticipated demand.
## Timelines and Expectations
Plans are in place to kick off mass production of these 4680 battery cells by late Q3 or early Q4 of 2024. Industry insiders suggest that Tesla is the primary customer expected to procure these advanced batteries from the Ochang Factory.
The decision to reallocate staff was reportedly a collaborative effort between LG Energy Solution’s labor and management teams. During their employment stabilization committee meeting earlier this month, they discussed strategies for better resource allocation across the company.
## Addressing Surplus Workers
An industry insider provided insight into the reallocations, noting, “We have been conducting reassignments frequently due to the discontinuation of certain electric vehicle models or the expansion of production lines. Since the second half of last year, the surplus workers have increased due to a temporary slowdown in demand for electric vehicles, extending the period some employees spend waiting without work.”
## Official Commentary
Noh In-hak, LG Energy Solution’s Battery Planning and Management Director, emphasized the company’s forward-looking approach: “The new 4680 battery line at the Ochang plant has been prepared. We tried to bring forward the mass production schedule as much as possible, but due to internal maintenance and schedule consultations with customers, we plan to start mass production at the end of the third quarter or beginning of the fourth quarter as originally planned.”
## Conclusion
LG Energy’s strategic moves and the concerted efforts to prepare for the production of 4680 cells demonstrate the company’s proactive measures to meet market demands and maintain its position as a key player in the evolving EV battery industry.
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Authored by William Kouch, Editor of Automotive.fyi
