LG Chem Secures Deal with Volvo Cars for Electric Vehicle Battery Packs

Strategic Insights -

LG Chem Ltd., the largest local maker of electric vehicle (EV) batteries in South Korea, has been selected by Volvo Cars Corp. as a provider of lithium-ion battery packs for electric vehicles. This deal marks the sixteenth company that LG Chem has signed a contract with to supply EV batteries. The company has also announced plans to construct a new EV battery plant in the US state of Michigan, with the aim of starting mass production by 2012.

Key Takeaways:

  • LG Chem has been selected by Volvo Cars Corp. as a provider of lithium-ion battery packs for electric vehicles.
  • The company has signed deals with five companies to supply electric vehicle batteries, including Hyundai Motor, CT&T Corp., Chang'an Automobile Group, Eaton Corp., and General Motors Corp.
  • LG Chem predicts that it will sign four additional deals to supply EV batteries by the end of this year.
  • The company will start providing EV batteries to GM and Eaton in the second half of this year.
  • LG Chem will start constructing a US$303 million EV battery plant in Michigan in July.
  • The plant is expected to begin mass production of EV batteries by 2012.
  • LG Chem has also broken ground for an EV plant in Ochang, South Korea, which is expected to cost 1 trillion won (US$906 million) and be completed by 2013.

Statistics:

  • LG Chem has signed contracts with 16 companies to supply electric vehicle batteries.
  • The company predicts that it will sign four additional deals to supply EV batteries by the end of this year.
  • The new EV battery plant in Michigan will cost US$303 million.
  • The plant is expected to begin mass production of EV batteries by 2012.
  • The EV plant in Ochang, South Korea, is expected to cost 1 trillion won (US$906 million).

Sources:

  • Asia Pulse, "LG Chem Signed with Volvo Cars: Statement"
  • Yonhap, "LG Chem to Build EV Battery Plant in US"