German lithium-ion battery developer and producer BMZ has signed a long-term battery cells supply deal with South Korea’s LG Chem.
BMZ said the contract covered supplies of “over a few hundred million cells” by the end of 2022 for products in the electro mobility and energy storage markets.
BMZ CEO Sven Bauer (pictured left) said the move “provides our customers with long-term security of supply for their products based on lithium-ion technology”.
LG Chem vice-president Youngsun Kim (pictured right) said the agreement also marked “a pivotal point for both companies to further expand domain within Europe”.
According to BMZ, “manufacturers, suppliers, machinery and plant manufacturers are fighting internationally for pole position in electro mobility and stationary energy storage systems”.
“Access to powerful and cost-effective battery cells is crucial”, the group said.
Bauer told BBB in March this year the group had experienced “delivery problems” with cells from suppliers in South Korea, but declined to give details.
Bauer said BMZ was considering partnering with a Japanese company to launch a battery cell production plant in Europe.
Last September, South Korea’s government backed plans by the country’s battery giants to inject a total of KRW2.3 trillion ($2.3 billion) into the sector over the next three years, to expand production and challenge China’s increasing dominance of the market.
Earlier this year, Poland said it would ‘sweeten’ a deal with LG Chem to build a major batteries production plant in the country for electric vehicles— with a grant reportedly worth more than $70m.