LG Chem announced that it will supply Li-ion batteries to Renault for EVs. Song Choong-sup, an LG spokesperson, said the deal would be the largest that LG Chem has signed with automakers so far, considering Renault’s expected production volumes.
The deal is forecast to help LG Chem ensure further business stability in its battery unit after securing major US and European carmakers as key clients for its lithium batteries.
The company is now reviewing a plan to build additional battery-manufacturing facilities in Europe or the US to actively respond to the rising demand from existing and future clients, Song said. Renault is planning to produce 500,000 EVs in Europe, LG said in a statement.
In the statement, Chief executive Kim Bahn-suk was quoted as saying that LG Chem has revised up its sales target for its battery business to more than 3 trillion won (US$2.6 billion) by 2015 from an earlier target of 1 trillion won (US$878 million), after the company successfully secured a number of deals.