LG Energy Solution and Chery Sign Cooperation Agreement for 8GWh Battery Order

According to Yonhap News Agency, South Korean battery manufacturer LG Energy Solution announced it has signed a 6-year supply agreement with Chinese automaker Chery Auto for 46-series large cylindrical batteries. This marks the first supply contract for cylindrical batteries between a Korean battery maker and a Chinese automaker.

LG Energy Solution will supply Chery Auto with 46-series large cylindrical batteries under the agreement, with an order volume reaching 8 gigawatt-hours (GWh) – enough to power approximately 120,000 electric vehicles. Industry experts estimate the contract value likely exceeds 1 trillion Korean won (currently about 5.252 billion yuan).

LG Energy Solution plans to begin supplying batteries to Chery Auto in early 2025. The batteries will be installed in Chery’s key vehicle models. Additionally, both parties plan to expand their cooperation by extending the supply of 46-series batteries to other EV models under Chery’s brand.

Currently, LG Energy Solution’s 46-series large cylindrical batteries primarily supply American EV makers Tesla and Rivian, featuring in models like the Model Y, Cybertruck, and Rivian R2. Chery becomes the third global automaker to adopt these batteries.

It’s noteworthy that the 46-series large cylindrical batteries represent LG Energy Solution’s new generation cylindrical cell technology. Available in 4680, 4695, and 46120 variants, they offer at least five times greater energy and output compared to the standard 2170 cylindrical cells, featuring advantages in fast-charging capability and high space utilization efficiency.

This year marks a crucial period for Chery Group’s global expansion. Data shows that from January to May, Chery Group’s vehicle sales surpassed 1 million units, with exports reaching 444,000 vehicles – accounting for nearly half of that total. Chairman Yin Tongyue revealed that around June 20 this year, Chery Group is expected to become China’s first automaker to cumulatively export over 5 million vehicles.