LG Energy Solution, a South Korean battery giant, has recently entered into a significant agreement with Chery, a prominent Chinese automaker. This marks the first time a South Korean battery manufacturer has signed a cylindrical battery supply contract with a Chinese automaker.
Under this agreement, LG Energy Solution will supply Chery with a total of 8 GWh of next-generation 46-series cylindrical batteries over the next six years. These batteries are powerful enough to support approximately 120,000 electric vehicles (EVs). The battery supply is set to commence early next year and will be integrated into Chery’s flagship EV models.
The collaboration between LG Energy Solution and Chery is not limited to this initial supply agreement. Both companies plan to extend their partnership to encompass more EV models within Chery’s product range. While the financial details of the contract have not been disclosed, industry experts estimate that the deal could surpass 1 trillion won ($734 million).
The 46-series cylindrical batteries provided by LG Energy Solution offer significantly higher capacity and power compared to existing cylindrical batteries. They also boast high production efficiency, making them an ideal choice for powering EVs. Kim Dong-myung, CEO of LG Energy Solution, expressed his enthusiasm about the partnership, stating that it signifies a crucial step towards global adoption of the company’s new battery technology.
Chery, known as one of China’s largest automakers and a key player in vehicle exports, recently achieved a milestone by exporting over 100,000 vehicles in May. The company is on track to reach an impressive cumulative total of 5 million vehicle exports, making it the first Chinese automaker to accomplish this feat.
On the other hand, LG Energy Solution continues to solidify its position as one of the world’s leading EV battery manufacturers. With an installation volume of 31.4 GWh in the first four months of the year, the company maintained its position as the third-largest player in the global market. Despite facing tough competition from industry giants like CATL and BYD, LG Energy Solution remains a key player in the EV battery sector.
Overall, the partnership between LG Energy Solution and Chery represents a significant development in the EV industry, showcasing the growing collaboration between South Korean battery manufacturers and Chinese automakers. This collaboration is poised to drive innovation and accelerate the adoption of electric vehicles on a global scale.
