LG Chem said on June 13 it will establish an electric vehicle battery joint venture with Geely Automobile Holdings in China in a push to tap deeper into the neighboring country’s fast-growing EV market.
Under their agreement signed in Ningbo, Zhejiang province, China, LG Chem and Geely agreed to establish a 50:50 venture. They will each chip in some $87 million.
The construction of their EV battery plant with a capacity of 10 gigawatt hours will start later in the year, according to LG Chem.
The South Korean company said EV batteries from the joint venture will start being placed in autos to be produced by Geely in 2022.
Geely, the No. 1 local brand in China with some 1.5 million units sold in 2018, aims to have 90 percent of its autos run on electricity in 2020.
LG Chem said the latest deal will expand its presence in the world’s top EV market and ensure a stable supply of EV batteries.
The company said it will actively seek JVs with other global automakers for EV battery production.
Geely automotive group owns brands like Swedish luxury carmaker Volvo and British sports car producer Lotus.
By Ram Garikipati and newswires (email@example.com)