Contract Amount Estimated at Trillions of Won
LG Chem has been chosen to supply trillions of won worth of electric vehicle (EV) batteries to Hyundai Motor and Kia Motors.
The two automakers have selected LG Chem as their battery supplier for pure EVs that will be mass-produced beginning 2022. The vehicles will be produced on the Electric-Global Modular Platform (E-GMP), a platform developed by Hyundai and Kia for exclusive production of EVs. Industry insiders expect the contract amount to be trillions of won.
Hyundai and Kia plan to place several orders for EV batteries over the coming years. They have awarded the first order to SK Innovation. LG Chem was awarded the second order. The first batch from SK Innovation will be supplied beginning the end of 2021, with the second batch from LG Chem scheduled to be supplied from 2022.
Hyundai and Kia selected LG Chem in consideration of the diversification and stability of supply lines. Although SK Innovation was selected as the first supplier, LG Chem has been supplying EV batteries to Hyundai Motor.
Some industry experts predicted that Samsung SDI would become the second supplier, as Hyundai Motor Group senior vice chairman Chung Eui-sun recently visited Samsung SDI to talk with Samsung Electronics vice chairman Lee Jae-yong. But considering supply stability, the two carmakers selected LG Chem.