South Korea’s LG Energy Solution has signed a supply agreement with Chinese carmaker Chery to deliver cylindrical batteries for electric vehicles (EVs), marking the first such deal between a South Korean battery maker and a Chinese automaker.
The agreement, reported by Yonhap News Agency, will see LG Energy Solution supply Chery with 8 gigawatt-hours (GWh) of next-generation 46-series cylindrical batteries over a six-year period, starting early next year. The volume is expected to support production of approximately 120,000 EVs.
Chery plans to use the batteries in its flagship electric models, with further expansion to other EVs under its brand expected in the future, according to the report. While the exact contract value has not been disclosed, industry estimates suggest it may exceed 1 trillion Korean won ($734 million).
The 46-series cylindrical cells offer significantly improved performance and manufacturing efficiency, with more than five times the energy capacity and output of previous-generation cylindrical formats. The supply agreement marks a significant step for LG Energy Solution as it aims to expand the market reach of its high-capacity battery technologies.
Chery, one of China’s largest automakers and a leading vehicle exporter, recently announced it is poised to reach a cumulative total of five million vehicle exports, becoming the first Chinese automaker to do so.
