It boasts an expanding order book. Chinese manufacturer Changan plans to introduce no fewer than 27 new hybrid electric and plug-in hybrid models by 2025. The necessary batteries will be produced at LG Chem's Nanjing facility. LG Chem will also supply the lithium-ion cells to electric vehicle firm Faraday Future after the two companies formed a partnership.
They have collaborated on a high-density EV battery technology tailored to Faraday Future's Variable Platform Architecture, the company's modular, universal, and scalable battery structure.
Their deal was worth $2.4 billion, which, at around $145/kWh, represents a capacity output of approximately 16.5 GWh of battery cells—enough for around 200,000 vehicles.
LG Chem worked closely with Faraday Future to create a custom-engineered battery cell to optimize the range and safety of mass-produced battery hardware, says Tom Wessner, Vice President of Global Supply Chain at Faraday Future.
UB Lee, President of the energy solutions company LG Chem, comments: “We are proud to work alongside Faraday Future as we collaborate to create the next generation of electric vehicles. Our progress to date represents a significant step forward in battery technology, and we look forward to further growth in our partnership and co-development of hardware in the future.”
Earlier this year, LG Chem announced an agreement to manufacture batteries for the plug-in hybrid version of the Chrysler Pacifica minivan at its plant in Michigan, USA. LG Chem also supplies batteries to Chevrolet, Volkswagen, Daimler, and Nissan, even though Nissan has its own battery joint venture, AESC.
Faraday Future is funded by the Chinese technology company LeEco. According to reports, Farady Future plans to produce 140,000 vehicles per year at its factory in Nevada, USA, while Leeco forecasts the production of 400,000 vehicles per year at its plant in Deqing County, Zhejiang Province, China.
By Dr. Peter Harrop, President, IDTechEx
