LG Chem joined hands with China’s No. 1 auto maker to make bigger forays into the nation’s electric car market.
LG Chem announced on August 16 that it signed a deal with Changan Automobile Group to supply batteries for the Chinese car maker’s next-generation plug-in hybrid model, starting from 2016.
Changan Auto, founded in 1862, is China’s state-run auto maker which has its headquarters and R&D center in Chongqing. Changan is China’s No. 1 car manufacturer with sales of 40 trillion won in 2014 and 80,000 employees.
LG Chem has cooperated with Changan Auto since 2009 to promote the development of electric car batteries. LG Chem said its deal with Changan cleared the way for the Korean battery marker to increase its sales by hundreds of billions of won.
Changan Auto is also reviewing the idea of expanding the application of the batteries that it will use for the plug-in hybrid models toward the entire range of its lineups.