LG Energy to power Elon Musk's SpaceX mission to Mars with battery deal

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LG Energy to power Elon Musk's SpaceX mission to Mars with battery deal

Published: 11 Nov. 2024, 09:53 Updated: 11 Nov. 2024, 17:23

SARAH CHEA
chea.sarah@joongang.co.kr

Audio report: written by reporters, read by AI

SpaceX launches its fourth flight test of the Starship from Launch Complex 1 at Starbase in Boca Chica, Texas, in June. [YONHAP]

LG Energy Solution will supply batteries to Elon Musk's SpaceX for its Starship rocket for Mars.

The Korean battery maker is currently in the process of developing batteries for the spacecraft based on its cylindrical batteries, according to multiple reports.

LG Energy Solution's 4695 cylindrical batteries [LG ENERGY SOLUTION]

The development reportedly comes at SpaceX's specific request to LG Energy Solution, the longtime battery supplier of the Musk-led Tesla. SpaceX has been using own batteries for its rockets so far.

LG Energy currently supplies SpaceX with 2170 cylindrical-type batteries, indicating their size of 21 millimeters (0.8 inches) in diameter and 70 millimeters in length.

The supply will likely start as early as next year, the reports said.

“SpaceX's selection of LG Energy Solution as a supplier may have come from LG's development records of batteries for spacesuits and the Korean battery maker's attempt to expand its business portfolio to non-EV sectors,” said Rho Woo-ho, a researcher at Meritz Securities.

LG Energy declined to comment, adding that “nothing can be confirmed related to deals with clients.”

SpaceX founder Elon Musk arrives on stage at an America PAC town hall on October 26 in Lancaster, Pennsylvania. [AFP/YONHAP]

Starship is a fully reusable heavy-lift launch vehicle being developed for a Mars mission and completed its fifth test flight last month.

Under Musk's goal to “one day take humanity to Mars,” it is designed to carry up to 100 people — around 20 times more than existing rockets — and can deliver 100 tons of payload.

SpaceX aims to have Starship up and running by September 2025, when the U.S. National Aeronautics and Space Administration's Artemis 3 moon mission is scheduled to lift off.

Following the news of the potential SpaceX deal, LG Energy Solution shares jumped 4.4 percent to close at 416,000 won ($298.21) on Monday after hitting more than 9 percent during intraday trading.

LG Energy Solution is scrambling to expand its non-EV businesses as a measure to defend profitability amid faltering EV demand. It, in May, inked a deal to provide 4.8 gigawatt-hours (GWh) of energy storage system batteries to Hanwha Solutions.

The Korean battery maker is also rushing to diversify its client portfolio, setting its 46-series cylindrical batteries at the head, indicating their size of 46 millimeters in diameter first introduced by Tesla. Energy density for the 46-series has been improved six times over its previous cylindrical 2170 battery and has been updated in output, space efficiency and more, the battery maker said.

LG Energy, on Friday, said it had inked a 46-series battery deal with the California-based Rivian in a contract potentially worth up to 8 trillion won.

In October, the Korean battery maker also signed a deal with Ford Motor to supply 109 GWh worth of midnickel EV batteries in a deal with an estimated value of 15 trillion won.

Mercedes-Benz also agreed to buy LG Energy's 46-series batteries in a deal of up to 7 trillion won.

BY SARAH CHEA [chea.sarah@joongang.co.kr]