LG Chem announces cylindrical battery deal with Lucid Motors

LG Chem, South Korea’s leading lithium-ion battery maker, said Tuesday that the company will start supplying cylindrical batteries this year for the Lucid Air, the first electric vehicle to be commercialized by Lucid Motors.

The supply deal is expected to enhance the firm’s electric vehicle battery portfolio, along with its proprietary pouch-type batteries.

The company is focusing on supplying pouch batteries and has order backlogs worth 150 trillion won ($124 billion). But the new contract, valid until 2023, suggests that LG is also ready to provide cylindrical batteries en masse for high-performance electric cars. LG also supplies cylindrical batteries for Tesla.

Lucid Motors, based in the United States and backed by Saudi Arabia’s state fund, is considered a “second Tesla” in the electric vehicle sector.

The company is planning to launch the Lucid Air, capable of going 643 kilometers on a single charge, in the second half of the year. 

LG Chem’s cylindrical battery model 21700 is 21 millimeters in diameter and 70 millimeters tall, featuring its NCM811 technology whose battery is comprised of 80 percent nickel, 10 percent cobalt and 10 percent manganese. It offers an improvement of about 50 percent in volume and performance over its smaller predecessor the 18650, which was 18 millimeters in diameter and 65 millimeters tall, the company said.

“The latest deal with Lucid Motors will help balance the company’s EV battery portfolio, proving that LG has both quality pouch and cylindrical batteries,” a company official said.

By Song Su-hyun (song@heraldcorp.com)