Seoul: LG Energy Solution Ltd., South Korea's leading battery manufacturer, announced a significant partnership with China's Chery Automobile Co. to supply cylindrical electric vehicle (EV) batteries.
According to Yonhap News Agency, LG Energy Solution will provide Chery Automobile with a total of 8 gigawatt-hours of its advanced 46-series cylindrical batteries over the next six years. This supply is sufficient to power around 120,000 EVs. Although the financial specifics of the contract remain undisclosed, industry analysts estimate its value to be approximately 1 trillion won (US$730 million).
The delivery of these batteries is set to commence early next year, with plans for installation in Chery's flagship EV models. The 46-series cylindrical batteries are recognized for their high production efficiency and offer over five times the energy capacity and output compared to traditional cylindrical cells.
LG Energy Solution highlighted that the agreement underscores the superiority of its proprietary nickel-cobalt-manganese (NCM)-based 46-series battery. This battery type surpasses the performance of lithium iron phosphate (LFP) batteries, particularly in cold temperatures and charging efficiency, while delivering enhanced energy density.
The partnership aims to expand further, with both companies intending to include additional EV models across the Chery Group. Kim Dong-myung, CEO of LG Energy Solution, commented on the deal, stating, "This deal marks a pivotal step in scaling up global adoption of our new 46-series batteries and securing a dominant market leadership."