LG Chem Ltd., South Korea's leading chemicals and battery maker, said Sunday that it has signed a deal to supply electric vehicle batteries to a leading Chinese carmaker.
Under the contract, LG Chem will supply Changan Automobile Co. with batteries for its next-generation plug-in hybrid electric vehicle, whose mass production is scheduled to start in 2016, the South Korean company said.
LG Chem didn't disclose how many batteries it will supply per year.
A state-run company, Changan Automobile is China's top automaker with a workforce of 80,000, with its sales reaching 40 trillion won ($34.1 billion) last year.
LG Chem has already signed deals to supply EV batteries to Great Wall Motor Co. and Dongfeng Motor Corp. -- China's No. 2 and No. 3 automakers, respectively.
LG Chem said the latest deal is expected to help strengthen its market presence in China, which has emerged as the world's largest EV market.
The company said it will establish an EV battery production line with an annual capacity of 100,000 units at its factory in Nanjing within this year, with mass production likely to start in 2016. (Yonhap)