LG Chem has signed a deal to supply China’s largest SUV producer with 200,000 lithium-ion batteries for a range of electric vehicles.
The Korean firm signed the deal with great Wall Motor to supply batteries for the automaker’s new EV range, to be launched in 2017.
Increased government subsidies have led to a surge in China’s EV market with research firm IHS predicting the market will grow to 110,000 vehicles this year and 655,000 vehicles by 2020.
The government is due to set up a battery charging system in major cities, and replace 30% of government cars with eco-friendly vehicles by 2020.
LG Chem has two plants – one in Korea and one in the U.S. – and has a new plant due for completion in Nanjing, eastern China, this year. More here
The new plant, is due to begin start production next year, will have an annual production capacity of 100,000 units.