LG Chem Sign Battery Supply Deals to Two Major Chinese Auto Manufacturers
D-Bo , June 15, 2014, 9:27 p.m.
LG Chem has announced that they have inked a deal to supply batteries to two major Chinese auto manufacturers. LG Chem will be supplying batteries to Shanghai Automotive, China’s largest auto maker, and Qoros Automotive, a Chinese and Israeli joint venture.
LG Chem will now supply four major Chinese auto manufacturers. Their other deals have been with First Automobile Works and Changan Automobile. The four manufactures have sold a total of 10.24 million cars on 2013 for combined 60 percent of the market share.
LG Chem said it has already received preorders for more than 100,000 units from the four automakers. "We're finalizing a deal with a Chinese partner to establish a joint venture there," President Kwon Young-soo said. "We'll choose a location to build a battery production plant in China and draw up more detailed plans in the second half of this year."
The Chinese government recently announced plans to put 5 million electric vehicles on the road by 2020. IHS, a global market researcher, predicted that China's eco-friendly car market will expand at the world's fastest rate, posting 20-fold growth between 2013 and 2020.