LG Chem was named the lithium-ion battery pack supplier for Volvo’s electric car program, as battery makers seek ties with carmakers, betting on the market’s future growth.
LG Chem has already teamed up with home market giant Hyundai Motor Co Ltd, Ford and General Motors from the U.S. and China’s Changan New Energy Automobile on auto batteries.
“LG Chem predicts that it will sign four additional deals to supply the EV batteries at the end of this year,” Peter Bahnsuk Kim, a vice chairman of the company, said in a statement.
LG Chem will start the construction of a US$303 million EV battery plant in Michigan in July with the aim of starting mass production of EV batteries by 2012.