SEOUL, May 15 (Korea Bizwire) — LG Chem Ltd., South Korea’s top chemicals company, said Wednesday that it has been tapped as a supplier of electric vehicle (EV) batteries to Swedish carmaker Volvo Car Group.
LG Chem said it has signed a multi-year contract to supply lithium-ion batteries for Volvo’s next generation EV projects. The batteries will be also used in EVs of Polestar, Volvo’s electric high-performance brand.
Volvo recently announced that its cars launched from 2019 will be EVs. LG Chem said its technology, supply chain management, and product price met Volvo’s strict requirements.
With major automakers developing their own module platform for future EVs, LG Chem said it expects to bag further EV battery deals. The company has already secured a battery supply deal for German automaker Volkswagen’s MEB electric car 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.