LG Chem will supply batteries to Volvo Group's next-generation electric cars. As Volvo said that it would fill half of its total sales with electric cars in 2025, the electric car industry has been paying attention to Volvo’s selection of battery suppliers.
LG Chem announced on May 15 that it will supply batteries to next-generation models of Volvo and Polestar, a luxury electric car brand of Volvo Group that will be designed based on a modular platform. China CATL was also selected as a supplier together with LG Chem. Although Volvo did not disclose the specific terms of its battery contracts, it said the contracts were worth trillions of won. The contracts will run for more than five years.
A modular platform is a car frame made to be applicable to a wide array of models. It can save carmakers cost and product development time, so many carmakers are adopting it as a core strategy.
As LG Chem inked the deal to supply EV batteries to the Volvo Group, it has become a company to supply batteries to 13 of the world’s top 20 automotive brands. LG Chem is supplying batteries to Mercedes-Benz, Volkswagen, Ford, GM, Renault and Hyundai among others.
Currently, LG Chem’s electric car battery order backlog is 110 trillion won. Experts are predicting that LG Chem’s electric car battery sales will hit 5 trillion won this year and 10 trillion won next year.
Lately, global automakers have been laying out plans to mass-produce third-generation electric vehicles which can run more than 500 km on one single charge one after another.