SEOUL, Feb. 2 (Korea Bizwire) — LG Energy Solution Ltd. (LGES) said Thursday it has signed a long-term agreement to supply battery modules for heavy-duty electric vehicles (EVs) to a U.S.-based power system provider.
LGES will supply 19 gigawatt-hour battery modules to Freudenberg E-Power Systems (FEPS), a Michigan-based developer of battery packs for heavy-duty EVs, starting next year, the Seoul-based company said in a release.
Details on the duration of the supply contract were not disclosed.
The 19 GWh supply is equivalent to powering more than 50,000 heavy-duty EVs, or some 270,000 passenger EVs.
FEPS, launched in 2018 as a subsidiary of Germany’s Freudenberg Group, develops and manufactures battery packs and battery management systems (BMS) for commercial vehicles.
Cells are a basic unit of batteries that are gathered in a cluster to make up a module. Modules then are put together to make up a pack, making one form of batteries to be installed to power an EV.
Modules require technologies to protect the cells from external shocks such as heat or vibration. Packs come with a BMS and a cooling device that control and manage the battery’s temperature and voltage.
FEPS will assemble LGES battery modules into packs to supply to major commercial vehicle manufacturers in North America, according to LGES.
The commercial EV market is forecast to grow 40 percent annually to 574 GWh in 2030, from 37 GWh in 2022, as heavy-duty cars require a larger number of batteries per vehicle and supply contracts are long-term based.
In particular, demand in North America and Europe is expected to rise rapidly as tougher environmental regulations are being applied to commercial vehicles with internal combustion engines, LGES said.
This is LG’s on going efforts to become one of the major players in the EV industry I believe.