South Korea’s LG Chem Ltd. has announced a contract to supply lithium-ion batteries to Chongqing Changan Automobile Co. for use in next-generation hybrids and all-electric vehicles. It’s the battery maker’s first deal with a Chinese OEM.
Chongqing Changan, which introduced its CV11 hybrid van last year, plans to launch the CV8 hybrid sedan next month in China. Like most current hybrids, the CV11 is powered by nickel-metal-hydride batteries.
LG Chem will begin delivering the lithium-ion batteries in the second half of this year. The company started shipments to Hyundai Motor Co. and its Kia Motors Corp. affiliate last year. It also will provide lithium-ion batteries for General Motors Co.’s upcoming Chevrolet Volt extended-range hybrid vehicle, and it has an unspecified contract with Eaton Corp.
To support the anticipated growth of the lithium-ion automotive battery market, LG Chem say it will increase its research and development budget by an unspecified amount.