Date
16 September 2019
The joint venture will have an annual production capacity of 10 GWh by the end of 2021, and its products will be supplied to Geely’s electric vehicles from 2022. Photo: Reuters
The joint venture will have an annual production capacity of 10 GWh by the end of 2021, and its products will be supplied to Geely’s electric vehicles from 2022. Photo: Reuters

South Korea’s LG Chem to team up with Geely on EV batteries

South Korean battery maker LG Chem Ltd. said on Thursday it has signed an agreement to set up a joint venture with China’s Geely Automobile Holdings Ltd. (00175.HK) to produce batteries for electric vehicles, Reuters reports.

The joint venture would have an annual production capacity of 10 GWh by the end of 2021, and its products would be supplied to Geely’s electric vehicles from 2022, LG Chem said in a statement.

The two parties would invest US$94 million each in the venture, the statement said.

Vehicles equipped with South Korean batteries currently are not eligible for government subsidies in China, the biggest auto and EV market in the world.

But Korean battery makers including LG Chem have announced investment plans to expand capacity in China, hoping China’s plan to phase out subsidies over the next couple of years will level the playing field.

“Through the joint venture, LG Chem has secured a stable structure to provide batteries for electric vehicles to the Chinese market,” LG Chem said.

The South Korean company said it would pursue more joint ventures with other global carmakers.

Meanwhile, Hyundai Motor Co. said it will invest in self-driving car software startup Aurora along with Kia Motors Corp. to speed up the development of autonomous vehicle technologies.

“With the new investment, the companies have agreed to expand research to a wide range of models and to build an optimal platform for Hyundai and Kia’s autonomous vehicles, Hyundai said.

Financial terms of the investment were not disclosed.

Aurora, which just announced a partnership with Fiat Chrysler Automobiles, competes with Alphabet’s Waymo and General Motors’ majority-owned Cruise, among others.

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