LG Chem Ltd. will establish an electric vehicle (EV) battery joint venture (JV) in China with Geely Automobile. Under the terms of a new joint venture agreement, LG Chem and Geely Automobile will establish a 50:50 venture. LG Chem and Geely will each invest US$87 million.
The factory site and the name of the JV will be confirmed later; the company plans to produce 10 GWh of electric car battery by the end of 2021.
LG Chem said that batteries from the joint venture will start being placed in Geely autos to be produced in 2022.
Geely Automobile is a subsidiary of Zhejiang Geely Holding Group, which also owns Volvo Cars and British sports car manufacturer Lotus. In may, Volvo Car Group hs signed long-term agreements with CATL and LG Chem to ensure the multi-billion dollar supply of lithium-ion batteries over the coming decade for next generation Volvo and Polestar models. (Earlier post.)