A Total of 8GWh to Be Supplied Over Six Years... Estimated at 1 Trillion KRW
Recognition for '46-Series' Competitiveness and Global Supply Capability
LG Energy Solution has become the first company in the domestic industry to supply large-scale cylindrical batteries to a Chinese automaker. The company has managed to break into the Chinese electric vehicle market, which is often referred to as an "impregnable fortress" due to its high domestic battery installation rate. Based on this achievement, LG Energy Solution plans to accelerate efforts to overcome the temporary demand stagnation known as the "chasm."
On June 16, LG Energy Solution announced that it had signed a contract with Chery Automobile, one of the top five automakers in China, to supply 46-series batteries totaling 8GWh over six years. An 8GWh supply is enough to equip approximately 120,000 electric vehicles, and the industry estimates the contract to be worth about 1 trillion KRW. Full-scale supply is scheduled to begin early next year, and the batteries will be installed in Chery Automobile's main models.
Chery Automobile, established in 1997, is a Chinese state-owned OEM company. Last year, it sold a total of 2.4 million vehicles and exported 1.1 million units, continuing its rapid growth. The company boasts a diverse portfolio spanning internal combustion engines, hybrids, and pure electric vehicles, and owns several global brands such as Chery and Exeed.
The Chinese electric vehicle market is highly closed to foreign battery manufacturers, earning its reputation as an "impregnable fortress." This is because local companies such as CATL and BYD receive extensive government support and are closely linked to automakers. According to the China Automotive Battery Innovation Alliance (CABIA), as of last month, CATL held a 45.9% share of the Chinese EV battery market, BYD 22.5%, and CALB 7.5%. More than 95% of the entire market is occupied by local companies.
The newly contracted 46-series battery is a cylindrical battery with a diameter of 46mm and a height of 80 to 120mm. Compared to the existing 2170 cylindrical battery, it offers at least five times greater energy capacity and output, and its high production efficiency can significantly improve electric vehicle range and performance. In addition, its fast charging and discharging speeds and excellent thermal management performance are expected to set a new paradigm in the EV battery market.
Kim Dongmyung, CEO of LG Energy Solution, stated, "Only irreplaceable and differentiated customer value based on unrivaled technological prowess can overcome the chasm in the electric vehicle market and form the foundation to dominate the upcoming supercycle. This supply contract with Chery Automobile is highly significant, and with this as a stepping stone, we will further expand orders for the new 46-series form factor in the global market to secure overwhelming market leadership."
Meanwhile, LG Energy Solution continues to invest actively in the 46-series and is expanding cooperation with major global automakers. In November last year, the company signed a large-scale supply agreement for the 46-series with U.S. electric vehicle startup Rivian. In March, at 'InterBattery 2025,' the largest battery industry exhibition in Korea, LG Energy Solution unveiled the new cylindrical 46-series battery and the Cell Arrangement Structure (CAS) battery module and pack solution, which further maximizes cylindrical battery performance and enhances safety.
Moon Hakhoon, a professor at Osan University’s Department of Future Electric Vehicles, commented, "Recently, Chinese automakers are selecting batteries not only based on production cost, but also considering quality and export requirements. Based on this assessment, they are pursuing a strategy to diversify battery supply channels to resolve supply instability." He added, "Since the source of batteries in EVs is disclosed, it also affects brand trust. The adoption of Korean-made batteries indicates a strategic decision in terms of quality."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
