LG Chem, the world’s leading electric car battery maker, said Sunday it had inked supply deals with SAIC Motor and Qoros Automotive, two of China’s leading car assemblers.
Under the deals, the South Korean battery manufacturer will supply batteries for SAIC’s next-generation plug-in hybrid electric vehicles, and Qoros’ hybrid electric vehicles.
LG Chem did not give further details on the deals, citing its nondisclosure agreements with the automakers.
|LG Chem president Kwon Young-soo. ( LG Chem)|
“LG Chem continues to receive partnership offers not only from Chinese car companies, but also global ones operating in the Chinese market,” said Kwon Young-soo, president of the battery maker.
“In order to effectively respond to increasing demand in China, LG Chem will soon announce concrete plans, including establishing a joint venture, within the latter half of this year.”
LG Chem, which has been moving to set up a joint venture in China, will soon select a partner and a location to build a new battery factory, according to a company official.
|LG Chem employees inspect a battery cell at the firm’s plant in North Chungcheong Province. (LG Chem)|
With the latest deals, the Korean battery giant will be supplying more than 100,000 batteries to four Chinese car manufacturers, including FAW Group and Changan Automobile.
“LG Chem has gained the upper hand in the Chinese battery market for electric cars, which is expected to grow 20 times by 2020,” said the battery firm in a statement, citing a report by IHS, a global research institute.
The Chinese government is seeking to boost the EV market in line with plans to invest 1.7 trillion yuan ($273 billion) to reduce fine dust pollution.
LG Chem has a battery factory with a production capacity of 200,000 battery units a year in North Chungcheong Province in Korea. It also has a plant in Holland, Michigan.
Hyundai Motor Group, GM, Renault, Ford and Volvo are among the firm’s 20 customers.
By Kim Young-won (email@example.com)