Photo credit: Tesla

South Korean chemicals giant LG Chem is set to begin producing batteries for Tesla vehicles at a domestic factory due to a demand increase from Tesla, as first reported by Reuters. According to Reuters, Tesla is asking LG Chem as well as other of its battery suppliers to increase their supplies in order to cope with a rise in demand for its vehicles. LG Chem is said to be converting some of its production facilities in South Korea to produce batteries for Tesla. Currently, the batteries made by LG Chem for Tesla are produced in a Chinese factory.

Tesla recently released its production numbers for the second quarter of this year, indicating it delivered 90,650 vehicles in the quarter despite a pandemic that suspended operations at its main production facility for weeks. The electric car maker only recently began sourcing batteries from LG Chem but appears to be already wanting for higher-than-normal supplies. Before now, Tesla’s batteries primarily came from a large battery factory operated by the company as a joint venture with Japan’s Panasonic Corp, a factory located in the U.S.

Tesla, as of late, has been on a tear, mainly signaled by the company recently surpassing Toyota to become the world’s most valuable automaker.