LG Chem to supply EV batteries to Chery
LG Chem has negotiated a contract to supply batteries to Chery Automobile Co. for a new electric vehicle that will go into production this year, South Korea's Yonhap News Agency reported.
The deal indicates that LG Chem is gaining a foothold in China's fast-growing EV market. According to Yonhap, the company will supply batteries to Chongqing Changan Automobile Co. for its next-generation EV.
Other EV battery customers include Great Wall Motor Co., Dongfeng Motor Corp. SAIC Motor Corp., China FAW Group Corp. and Qoros Automotive Co.,
LG Chem is building a plant in Nanjing that will produce up to 100,000 battery packs a year. The factory will launch production next year.
While China's EV market remains small, it has been growing fast over the last year or so. The central government aims to have 5 million electric cars and plug-in hybrids on the road by 2020.
In the first six months, Chery Automobile posted a 17 percent rise in vehicle sales to 252,439 vehicles. The state-owned carmaker is based in Wuhu in the eastern province of Anhui.