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LG Innotek, a Tesla Cybertruck supplier, is competing with Samsung Electro-Mechanics for a Giga Berlin Project.
Tesla's Cybertruck Supplier Vies for Company's Berlin Project
LG Innotek and Samsung Electro-Mechanics are competing for Tesla's "Berlin Project" to see which business will supply camera modules for electric automobiles Tesla expects to sell in Europe, as per Teslarati.
The major production facilities of Samsung Electro-Mechanics are in China, whereas LG Innotek's are in North America. LG Innotek has a factory in Poland that produces other automobile components, providing it a competitive advantage in the Berlin Project against Samsung Electro-Mechanics.
Tesla Giga Berlin currently manufactures the Model Y, an all-electric small SUV. In November, Elon Musk announced a forthcoming €25,000 EV from Giga Berlin.
Tesla has plans to expand Gigafactory Berlin, increasing the factory's yearly manufacturing capacity from 500,000 to 1 million units. The automaker from Texas has also proposed purchasing 100 hectares of property near Giga Berlin.
The History of Tesla and LG Innotek
LG Innotek provides camera modules for Tesla Cybertruck to Giga Texas in Austin. Tesla announced an annual capacity of 125,000 Cybertruck units this year in October. By 2025, the company expects to boost Cybertruck production to 250,000 units.
Last year, the South Korean business agreed to sell $746 million in camera modules to Tesla. LG Innotek made a strategic decision to focus on its automotive camera module business, despite the fact that they were two or three times more expensive than the systems in smartphones. The $746 million deal with Tesla covered camera modules and shipments in North America for the Model Y, Model 3, Tesla Semi, and Cybertruck.
According to local media, LG Innotek will also supply modules to Gigafactory Mexico, indicating the advancement of the new Tesla factory. The Mayor of Salinas, Victoria, indicated in November that Tesla suppliers from Asia were already planning for Giga Mexico.
Earlier this month, Tesla advertised for a Procurement Manager for Giga Mexico in Nuevo León. Tesla's new gigafactory in Nuevo Leon will be responsible for producing the company's $25,000 electric vehicle.
Photo: Charlie Deets/Unsplash
