- LG Energy Solution will supply Chery with a total of 8 GWh of next-generation 46-series cylindrical batteries over the next six years, enough to power about 120,000 EVs.
- The battery supply is scheduled to begin early next year and will be installed in Chery's flagship EV models.
South Korean battery giant LG Energy Solution has signed a battery supply agreement with Chery, marking the first time a South Korean battery maker has signed a cylindrical battery supply contract with a Chinese automaker.
LG Energy Solution announced today that it has reached an agreement with Chery to supply cylindrical electric vehicle (EV) batteries, according to a report by Yonhap News Agency.
The South Korean battery maker will supply Chery with a total of 8 GWh of next-generation 46-series cylindrical batteries over the next six years, enough to power about 120,000 EVs.
The battery supply is scheduled to begin early next year and will be installed in Chery's flagship EV models, according to the report.
The two companies plan to expand their collaboration to include more EV models under Chery's umbrella, the report noted.
The contract amount has not been disclosed, but industry observers estimate it could exceed 1 trillion won ($734 million), Yonhap News Agency said.
The 46-series cylindrical batteries have more than five times the capacity and power of existing cylindrical batteries and offer high production efficiency, the report noted.
"This deal marks a pivotal step in scaling up global adoption of our new 46-series batteries and securing a dominant market leadership," said Kim Dong-myung, CEO of LG Energy Solution.
Chery is one of China's largest automakers and one of the top exporters.
The company exported 100,737 vehicles in May, marking the second month this year with exports exceeding 100,000 units, according to data compiled by CnEVPost.
It is set to reach a cumulative total of 5 million vehicle exports later this month, becoming the first Chinese automaker to achieve this milestone, Chery announced last week.
LG Energy Solution is one of the world's largest EV battery manufacturers, with a installation volume of 31.4 GWh in January-April, up 16.3 percent year-on-year, according to data from South Korean market research firm SNE Research.
The South Korean company maintained its position as the world's third-largest player with a 10.2 percent share in January-April, trailing CATL's 38.1 percent and BYD's 17.3 percent.
($1 = KRW 1,361.47)
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