South Korean electric car battery maker, LG Chem, has inked supply deals with SAIC Motor and Qoros Automotive, two of China’s leading car assemblers, to supply electric car batteries.
With the latest deals, LG Chem has clinched orders to supply more than 100,000 electric car batteries to the four Chinese automakers, including FAW Group and Changan Automobile.
LG Chem, which has factories in the United States and Korea, also said it plans to build a joint venture in China in the second half of this year to produce electric car batteries to cope with growing demand in the region.
LG Chem’s plan comes as the Chinese government has announced a plan to increase the number of electric cars in use in the world’s largest car market to 5 million units by 2020.
“LG Chem is in the final stage of choosing a strategic partner to establish a battery joint venture in China,” LG said in a statement. “We will unveil the exact location of the venture and other details later.”
LG declined to name the potential Chinese partner, but said it would make an announcement soon.
Hyundai Motor Group, GM, Renault, Ford and Volvo are among the firm’s 20 customers.