Samgi EV to Supply Battery Components Worth 143.7 Billion KRW for Electric Commercial Vehicles to LG Energy Solution

Samgi EV announced on the 5th that it has signed a supply contract worth 143.7 billion KRW to provide electric commercial vehicle battery components to LG Energy Solution.

This contract involves supplying Samgi EV's flagship product, the End-plate, to LG Energy Solution, with the contract period spanning from November 2026 to December 2032. The contract amount is approximately 143.7 billion KRW, which is 158% of last year's sales revenue.

Despite the contraction of the electric vehicle market due to the electric vehicle chasm, the electric commercial vehicle market has steadily grown, with an expected average annual growth rate of about 40% from 2022 to 2030, reaching a scale of 574 GWh.

In particular, demand for electric commercial vehicles is rapidly increasing in urban logistics and public transportation sectors, driven by the rise in delivery services within cities, where electric commercial vehicles are preferred due to their low noise and zero carbon emissions.

The growth of the electric commercial vehicle market stems from advancements in battery technology and strengthened environmental regulations. Battery technology improvements have increased driving range and reduced charging time, significantly enhancing the efficiency of commercial vehicles.

Since the performance of electric commercial vehicles depends on capacity and output, the batteries used must be high-performance ternary lithium-ion secondary cells that offer high output, long lifespan, and high energy density. The End-plate produced by Samgi EV is also expected to see increased demand compared to conventional passenger vehicles, as electric commercial vehicles require more battery capacity per vehicle.

Kwok Dong-sik, Executive Director and Head of Research at Samgi EV, stated, “Securing this large-scale contract with LG Energy Solution through 2032 amid the challenging market environment caused by the electric vehicle chasm solidifies Samgi EV’s position as a strategic growth partner of LG Energy Solution. We anticipate that the electric vehicle market will rapidly recover across various sectors due to factors such as advancements in battery technology, environmental regulations, and corporate sustainability goals.”