LG Energy signs six-year contract with Chinese car maker Chery
The agreement is being seen as the first time a South Korean firm is supplying a substantial volume of 46-series cylindrical batteries to a Chinese carmaker.
LG Energy Solution has signed a six-year contract with Chinese carmaker Chery Automobile to supply 8 GWh of next-generation cylindrical batteries.
Details of the contract value were not disclosed.
The agreement is being seen as the first time a South Korean firm is supplying a substantial volume of 46-series cylindrical batteries to a Chinese carmaker.
The batteries will be used in Chery’s flagship models and deliveries are expected to begin early next year. The volume supplied will be sufficient to power some 120,000 vehicles, according to a report by The Korean Economic Daily.
“Only irreplaceable and differentiated customer value based on unrivaled technology can overcome the current slowdown in the EV market and dominate the upcoming supercycle,” LG Energy Solution Chief Executive Officer Kim Dong-myung was quoted as saying by Pulse. “This contract will serve as a launchpad for expanding orders of our new 46-series form factor to global markets and securing our overwhelming market leadership.”
Chinese state-owned carmaker Cherry Motors has various brands such as Cherry, EXEED and Omoda. Last year, it reported annual sales of 2.4 million units and exports of 1.1 million units.