LG Chem has been stepping up its efforts to expand its electric car battery business, which is anticipated to become one of the next cash cows of the chemical firm.
As part of the firm’s efforts to increase its presence in the global market, it has recently inked a supply deal of EV batteries with Chinese carmaker Chery Automobile headquartered in Anhui Province.
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LG Chem’s production line of batteries for electric vehicles in Ochang, North Chungcheong Province. (LG Chem) |
“LG Chem, which has inked supply deals with more than half of the top 10 carmakers in China, has gained a strong footing to lead the Chinese market, which is considered to be the largest EV market in the world,” said LG Chem CEO Kwon Young-soo in a statement, vowing to make the firm the world’s No.1 battery maker by 2016.
The other major Chinese automotive firms partnering with the affiliate of LG Group include Shanghai Automotive Industry Group, Dongfeng Motor Group and FAW Group.
LG Chem said it hoped to clinch more supply deals with the Chinese partners in the future.
Government-led projects to increase the use of environmentally-friendly cars in China require major Chinese cities to be installed with more charging stations and regional governments and public organizations to have EVs account for 30 percent of their new official vehicles.
China has become one of the rising electric vehicle market in the world due to its policies favorable toward EVs.
Around 110,000 units of environmentally-friendly vehicles are expected to be rolled out in the Chinese market this year, and the figure is forecast to grow to around 655,000 units by 2020, according to research firm IHS.
The Korean company, meanwhile, will complete the construction of a production complex with a capacity of 100,000 EV batteries per year by the end of this year in Nanjing, China.
When the Chinese production lines come into operation next year, the company will run three production sites including one in Ochang, Korea, and another in Holland, U.S.
By Kim Young-won (
wone0102@heraldcorp.com)
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