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LG Energy bags huge battery supply deal with Chinese EV maker Chery Automobile

Published: 16 Jun. 2025, 18:26 Updated: 16 Jun. 2025, 18:43

LG's 46-series cylindrical batteries [LG]

LG Energy Solution signed a major battery supply deal with Chinese state-owned EV brand Chery Automobile, breaking new ground as the first Korean battery company to secure a contract of this scale with a Chinese automaker.

LG Energy Solution said on Monday that it will supply 46-series cylindrical batteries to Chery Automobile from next year through 2030.

The total supply volume will reach 8 gigawatt-hours, enough to power about 120,000 EVs. Industry analysts estimate the deal to be worth over 1 trillion won ($735 million).

The batteries will be delivered to Chery’s plant in Europe. Chery Automobile ranked seventh in global EV sales last year.

“We will install the 46-series battery in Chery Automobile’s main EV models and are in talks to expand the partnership to other models,” an LG Energy Solution representative said.

The 46-series battery is an NCM — nickel, cobalt and manganese — cylindrical battery also supplied to Tesla.

With a diameter of 46 millimeters (1.8 inches) and a height of 80 to 125 millimeters, it significantly outperforms the older 2170 model in energy density and output.

The 46-series allows for longer driving range and better performance with fewer battery cells, and is considered a potential game-changer in the EV battery market alongside solid-state batteries.

“This is an NCM battery, a product where Korean companies excel,” an LG spokesperson said. “We’ve broken through the preference of Chinese automakers for domestic suppliers and will continue expanding the 46-series to secure leadership in the global market.”

LG Energy Solution also signed a major supply deal for 46-series batteries with U.S. EV startup Rivian in November last year.

Market research firm SNE Research projects the global market for 46-series batteries will grow from 155 gigawatt-hours this year to 650 gigawatt-hours by 2030, with an annual growth rate of 33 percent.

Chinese battery makers like CATL are pushing into global markets with cheaper LFP — lithium, iron and phosphate — batteries.

LFP batteries with improved energy density have recently started to challenge NCM batteries in both cost and performance.

“Right now, Chinese-made LFP batteries are popular for their price competitiveness,” an LG insider said. “But when the market shifts to prioritize safety, design and performance, premium products like the 46-series NCM battery will draw more attention.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM KI-HWAN [[email protected]]