Freudenberg e-Power Systems and LG Energy Solution have signed a multi-year contract for the supply of lithium-ion battery modules. With a total capacity of 19 GWh, Freudenberg is expanding its capacities to meet rising demand and ensure the best possible supply for its customers in commercial vehicle applications, such as trucks and buses in North America and Europe.

The signing of the contract marks an important milestone for both companies in the further expansion of sustainable electric drives in the field of commercial vehicles.

The partnership covers the supply of lithium-ion battery cell modules. The battery cell modules supplied by LGES are integrated by Freudenberg e-Power Systems in their battery packs, offering their customers in the truck and bus sector fully engineered drive solutions including intelligent battery management systems, cooling, telematics, and all other relevant elements. The battery cell modules will be assembled at Freudenberg e-Power Systems’ XALT gigafactory in Midland, Michigan.

With the recent acquisition of XALT by Freudenberg e-Power Systems, the company is investing a further double-digit million sum in the expansion of its battery business and its capacities.

Leveraging its experience in battery manufacturing, LGES has been expanding its battery business into the commercial vehicle sector. Based on the partnership with Freudenberg, the company now intends to drive its commercial vehicle battery business in North America and Europe.