SEOUL, May 17 (Korea Bizwire) — LG Chem Ltd., South Korea’s leading chemical and battery maker, said Sunday that it has signed a deal to supply electric vehicle batteries to a major SUV company in China.
Under the deal signed with Great Wall Motor, LG Chem will supply batteries for plug-in electric SUV models that the Chinese company plans to produce starting in 2017.
LG Chem did not disclose when it signed the deal along with other detailed terms of the contract.
Established in 1984, Great Wall Motor is the No. 1 company in China in terms of SUV and pickup truck sales. Last year, the company, which employs around 70,000 employees, logged 11 trillion won (US$10.1 billion) in sales.
By clinching the deal, LG Chem expects to be able to strengthen its market presence in China, which has emerged as a major electric vehicle market.
China is also a big consumer of SUVs. Last year, SUV sales there came to 4.1 million units, and the figure is expected to expand to 6.2 million units in 2016.