LG Chem Said in Talks to Supply Batteries to Tesla (TSLA)

(Updated - October 27, 2015 3:04 PM EDT)

LG Chem is in talks to supply batteries to Tesla (Nasdaq: TSLA), according to Nikkei

UPDATE - According to the report, Tesla's current partner, Panasonic, supplies about 46 percent of the lithium-ion battery market.

While it wasn't made known how the deal between LG Chem and Tesla would affect Tesla's relationship with Panasonic, news comes as Tesla is looking to ramp production on its Model X SUV, while also improving production rates for the Model S.

Panasonic and Tesla are also partners on the Gigafactory battery factory in Reno, Nevada.

LG Chem already supplies batteries for 20 other companies and recently finished construction of a facility in Nanjing, China.

Shares of Tesla are down 2.7 percent.

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