Recently, a conversation between Elon Musk and South Korean President Yoon Suk-yeol was revealed. During the video call, Elon Musk said that he considers South Korea as one of the top candidates for a Tesla factory in Asia. It has been known since the year that Tesla will announce the next gigafactory location later this year. However, South Korea has not officially confirmed it yet.
Image credits: Drive Tesla
In addition to the discussion, there is evidence from a few documents and events. These were noticed last quarter, prompting a proposal to build the next giant factory in Canada. Canada’s Minister of Innovation, Science and Industry, Francois-Philippe Champagne (FPC) confirmed the arrest. He talks to Tesla. Minister Champagne visited Tesla’s Markham facility in Canada. The Markham site makes machines installed at Tesla gigafactories around the world. In August, Tesla was in talks with the country’s federal government about a factory in Canada, according to lobbyist filings in the country. The filings covered the possibility of Tesla exploring manufacturing opportunities in Canada and speeding up the licensing process.
The country plans to become the “supplier of choice” for the global auto industry. In North America, especially after the United States passed the Inflationary Reduction Act (IRA), the country is well positioned to become a strong contender as the top EV supplier in North America.
Next gigafactory
While a factory in Canada would be a plus, the automaker is also looking to strengthen its presence in Asia. According to Elon Musk, it means that South Korea will be a country of high consideration. Giga Shanghai has been the company’s power plant, contributing significantly to Tesla’s production and financing. However, the tension between the United States and China could put Tesla in a dangerous position. South Korea is an ideal country for another Tesla Gigafactory in Asia. Elon Musk and President Yun have talked about Tesla strengthening supply chain cooperation with South Korea, hinting that the EV maker will have a reliable support system for its giant factory in the country.
The company already has a strong relationship with South Korea. It is working with South Korean company LG Energy Solutions (LGES) to make EV batteries. In June, the South Korean battery maker announced plans to invest $567.76 million to expand domestic production. The LGS has announced expansion, which includes plans for a new congregation. 4680 Production of cylindrical battery cells. More details on where the next giant factory will be located are expected to be revealed later this year.
