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Home Freudenberg e-Power Systems and LG Energy Solution Sign Multi-Year Lithium-Ion Battery Cell Supply Agreement
Battery

Freudenberg e-Power Systems and LG Energy Solution Sign Multi-Year Lithium-Ion Battery Cell Supply Agreement

By Moira ShortleFebruary 7, 2023No Comments3 Mins Read
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Freudenberg e-Power Systems and LG Energy Solution (LGES) have entered into a multi-year agreement for the supply of lithium-ion battery cell modules. The contract, which will have a total capacity of 19 GWh, aims to meet the rising demand for commercial vehicle applications, such as trucks and buses in North America and Europe. The move marks an important step towards the growth of sustainable electric drives in the commercial vehicle industry.

Freudenberg’s e-Power Systems is a leading provider of emission-neutral energy systems in the sector, which requires batteries that are robust and durable. To provide its customers with the best quality, innovative and cost-effective solutions, Freudenberg has partnered with LGES, a global manufacturer of lithium-ion batteries. The partnership covers the supply of lithium-ion battery cell modules, which are ideal for use in commercial vehicles due to their properties.

See also: LG Energy Solution (LGES) announced another battery factory in North America

For example, the battery in a commercial vehicle must be able to withstand a higher energy throughput, up to 11 times that of a passenger car. The battery cell modules supplied by LGES will be integrated into battery packs by Freudenberg e-Power Systems, providing their customers in the truck and bus industry with fully engineered drive solutions, including intelligent battery management systems, cooling, telematics, and all other relevant elements. The battery cell modules will be manufactured at the XALT gigafactory in Midland, Michigan, USA, which was recently acquired by Freudenberg e-Power Systems. The company is investing a double-digit million sum in the expansion of its battery business and capacities.

“The partnership with LG Energy Solution enhances our leading battery offering for the bus and truck market,” explains Dr. Max Kley, CEO of Freudenberg e-Power Systems. “Together we are able to offer our customers an unparalleled range of solutions specifically tailored to the demanding requirements of this market.” Jeff Michalski, Managing Director Battery Business, adds: “Especially in view of the strong increase in demand worldwide, this is a major plus in the market. We can thus offer both our existing and new customers the highest quality and secured supply.”

See also: Lion Electric announces multi-year cell supply agreement for EV battery manufacturing with a top-tier supplier

With the partnership with Freudenberg, the company aims to boost its commercial vehicle battery business in North America and Europe.

“Our partnership with FEPS will serve as a launch pad to lead in the commercial vehicle battery market which has the potential for exponential growth,” said Dong-Myung Kim, President of Advanced Automotive Battery Division at LG Energy Solution. “Together with Freudenberg, we will endeavor to create unparalleled customer value through differentiated capabilities accumulated across the entire battery-related field, such as battery cells, modules, packs, and BMS.”

This new contract cements the two companies’ commitment to providing high-quality battery solutions to the heavy-duty sector. The signing of this agreement was a significant moment for the companies, and Nils Martens, CCO of Freudenberg e-Power Systems, emphasized the significance of the event, saying that the partnership with LGES, a leading battery manufacturer, will help them better serve their customers.

With over 40 million miles driven, Freudenberg’s battery systems are among the top solutions in the market. The long-term contract with LGES highlights the growth potential and strategic importance that Freudenberg sees in its e-mobility solutions. The company’s expertise and innovative power in both battery and fuel cell technology make Freudenberg e-Power Systems a leader in the heavy-duty electromobility sector.

See Also:

  1. LG Energy Solution to supply Isuzu with batteries for electric commercial vehicles, report says
  2. Samsung SDI expands battery manufacturing plant in Michigan with $62.7 million investment
  3. French Government Reduces Subsidies for Electric Cars in 2023
  4. Proterra Begins Assembly at Battery Production Facility in South Carolina for Electric Vehicle Deliveries
  5. LG Energy Solution in Talks with Tesla to Supply Batteries from Arizona Factory – Report
Automotive Battery Commercial Vehicle Commercial Vehicles E-Mobility Freudenberg e-Power Systems Fuel Cell Gigafactory LG Energy Solution North America
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