Battery Supply to Chrysler
LG Chem Ltd., South Korea’s leading chemicals and battery maker, announced on Feb. 22 that it has signed a contract with Fiat Chrysler Automobiles, one of three major North American carmakers, to supply electric vehicle batteries.
The Korean company will provide the 16-kilowatt-hour battery pack to Chrysler for the plug-in hybrid electric vehicle (PHEV) version of its minivan Pacifica that is slated to be mass-produced later this year. It also plans to produce and supply batteries at its facility in Holland, Michigan, in the U.S.
LG Chem said the supply will be in entire pack that includes battery cells and various components such as a battery management system (BMS), proving its technological capabilities in all areas of batteries.
The contract is expected to allow LG Chem to raise hundreds of billions of won in sales. A technology partnership agreement between the two companies also ensures additional orders in the future.
LG Chem was selected as the supplier of electric vehicle batteries for three major North American carmakers -- General Motors, Ford and Chrysler. The company said it has already secured battery supply orders for hundreds of thousands of units from the three automakers.
LG Chem added a line late last year and is running four lines at full capacity to meet increasing orders. It newly hired 100 workers late last year to bump its total employees to 330.
Lee Woong-beom, head of LG Chem’s battery business, said. “The recent contract with Fiat Chrysler Automobiles has allowed the company to secure all three major North American automakers as its clients, paving the way for it to take the lead in the global electric vehicle battery market. LG Chem plans to seek more contracts worldwide in the future to maintain the lead in the global market.”