LG Energy signs cylindrical battery deal with Chery

LG Energy Solution has signed a cylindrical battery supply contract worth about 1 trillion won with Chery Automobile, marking the first large-scale deal by a South Korean battery maker to supply cylindrical cells to a Chinese automaker.

The company announced on June 16 that it will provide Chery with eight gigawatt-hours (GWh) of 46-series cylindrical batteries over the next six years. The 46mm-diameter batteries will be enough to power approximately 120,000 electric vehicles. Full-scale deliveries are expected to begin early next year.

Industry analysts see the agreement as a strong validation of LG Energy Solution’s competitiveness in the 46-series battery segment, which has become a key arena in the global battery race. With this order from China, LG has now secured clients for its 46-series in North America, Europe, and China.

Since late last year, LG Energy Solution has secured a series of major contracts for its 46-series batteries. In October, the company agreed to supply 50.5 gigawatt-hours to a Mercedes-Benz affiliate beginning in 2028. Although full specifications were not disclosed, the batteries are believed to be part of the 46-series lineup.

In November, LG signed another major deal, this time with U.S. electric vehicle maker Rivian, to supply 67 gigawatt-hours of batteries. The company is also reportedly preparing to provide 46-series batteries to Tesla.

“This contract with Chery is highly significant,” said Kim Dong-myung, president of LG Energy Solution. “It will serve as a stepping stone for expanding global orders for our 46-series batteries and reinforcing our leadership in the market.”

Founded in 1997, Chery Automobile produces both internal combustion engine and electric vehicles. As of 2024, the company manufactures about 2.4 million vehicles annually under brands including Chery and Omoda.


박현익 기자 beepark@donga.com