Business on the up for LG Chem batteries
LG Chem Ltd., South Korea's top chemicals company, has been chosen to supply EV batteries to Swedish automotive company Volvo Car Group.
LG Chem stated that it has successfully signed a multiyear contract with Volvo to supply lithium ion batteries. The batteries will also be used for Volvo’s electric high-performance brand Polestar.
Volvo has announced that its production from 2019 will be EV’s. The technology, supply chain management, and product price of LG Chem met Volvo’s strict requirements.With the up rise in the trend and substitution of automakers developing their own platform for EV’s, LG Chem has a positive outlook for its battery business. LG Chem has already bagged a battery supply deal with German automotive company Volkswagen’s MEB EV platform.
LG Chem currently supplies EV batteries to 13 of the top 20 car brands, which include Mercedes-Benz, Ford, Renault and Hyundai Motor.
LG Chem said its order backlog for EV batteries is currently valued at 11 trillion won (US$9.2 billion). The company added its EV battery sales are expected to reach five trillion won this year, and grow up to 10 trillion won in 2020.