LG Energy Solution Expands Global Presence with Battery Cell Supply Agreement for Electric Buses in Vietnam

Strategic Insights -

LG Energy Solution is strengthening its global presence by expanding its supply chain to emerging markets in Asia, as seen in its recent Memorandum of Understanding (MOU) with Kim Long Motors, a Vietnamese automotive company. The MOU is for the supply of cylindrical battery cells with a reported scale of 1GWh. The batteries, which are LG Energy Solution's 46-series, will support Kim Long Motors' increasing production of electric buses with lower operating costs. This cooperation is expected to enhance the competitiveness of Vietnamese electric vehicles and position Vietnam as a center of the clean energy industry in Asia and the world.

Key Takeaways:

  • LG Energy Solution has signed a Memorandum of Understanding (MOU) with Kim Long Motors, a Vietnamese automotive company, for the supply of cylindrical battery cells with a reported scale of 1GWh.
  • The batteries to be supplied are LG Energy Solution's 46-series, which offer five times the output and more than six times the capacity compared to existing batteries.
  • Kim Long Motors is currently increasing its production of electric buses, which have relatively lower operating costs, and plans to start construction of a passenger car plant with an annual capacity of 50,000 units in the first quarter of next year.
  • LG Energy Solution has been receiving positive news from global companies in Vietnam, the United States, and Europe, including a 6 trillion won contract to supply ESS batteries to a customer presumed to be Tesla.
  • The cooperation between LG Energy Solution and Kim Long Motors aims to secure a stable supply chain and thoroughly manage quality, enhancing the competitiveness of Vietnamese electric vehicles and positioning Vietnam as a center of the clean energy industry in Asia and the world.
  • Le Quang Dat, vice chairman of Kim Long Motors board of directors, emphasized the importance of cooperation with LG Energy Solution, stating that it will allow them to secure a stable supply chain and manage quality thoroughly.
  • LG Energy Solution has also signed battery supply contracts with Chery Automobile (China), PGE (Poland), and Delta Electronics (Taiwan).

Statistics:

  • 1GWh: reported scale of cylindrical battery cells to be supplied by LG Energy Solution
  • 46mm: height of LG Energy Solution's 46-series batteries
  • 80-120mm: length of LG Energy Solution's 46-series batteries
  • 5 times: increased output of LG Energy Solution's 46-series batteries compared to existing batteries
  • 6 times: increased capacity of LG Energy Solution's 46-series batteries compared to existing batteries
  • 3.5 trillion won: capital investment in Kim Long Motors' automotive plant in Hue Province, Vietnam
  • 50,000 units: annual capacity of Kim Long Motors' passenger car plant
  • 6 trillion won: contract value for LG Energy Solution to supply ESS batteries to a customer presumed to be Tesla

Sources:

  • LG Energy Solution, "LG Energy Solution Signs MOU with Kim Long Motors for the Supply of Cylindrical Battery Cells" (August 28, 2022)
  • Kim Long Motors, "Kim Long Motors Completes 3.5 Trillion Won Automotive Plant in Hue Province, Vietnam" (2021)
  • Global Data Point, "LG Energy Solution Expands Global Presence with Battery Cell Supply Agreement for Electric Buses in Vietnam" (SyndiGate Media Inc., 2022)