South Korean LG Chem will supply electric vehicle batteries to Fiat Chrysler Automobiles NV from late this year, diversifying its distribution channels in the North American market.
LG Chem said it will produce batteries for the plug-in hybrid version of Chrysler Pacifica minivans at its factory in Michigan. The plant currently makes batteries for the Chevrolet Bolt EV and the Ford Focus electric vehicles.
Under the deal, LG Chem secured hundreds of millions of dollars in sales ― but the company did not disclose the exact amount.
In the U.S., the company can produce batteries for more than 120,000 PHEVs each year. Its Korean production line holds a capacity for some 350,000 PHEVs, followed by 180,000 in China.
So far, LG Chem has formed EV battery partnerships with 20 automakers in major markets in the U.S., China and Germany.