LG Energy Solution Signs MOU with Vietnam’s Kim Long Motors for Battery Supply

LG Energy Solution Signs MOU with Vietnam’s Kim Long Motors for Battery Supply

LG Energy Solution is exploring the supply of battery cells for electric buses to Kim Long Motors, a Vietnamese automotive company. This strategy aims to strengthen its global presence by expanding its supply chain to emerging markets in Asia.

On Aug. 28, LG Energy Solution announced that it had signed a memorandum of understanding (MOU) with Kim Long Motors, an automotive subsidiary of Vietnamese transportation company Phu Tai Group, for the supply of cylindrical battery cells. The supply scale is reported to be around 1GWh (gigawatt-hour).

The batteries to be supplied are believed to be LG Energy Solution’s 46-series, which are cylindrical batteries with a height of 46mm and a length of 80-120mm, offering five times the output and more than six times the capacity compared to existing batteries (2170). Kim Long Motors is currently increasing its production of electric buses, which have relatively lower operating costs. It is believed that these high-performance batteries are deemed suitable for long-distance bus routes.

Kim Long Motors is a company that completed a 3.5 trillion won automotive plant in Hue Province, Vietnam last year, focusing primarily on bus production. It is also constructing a passenger car plant with an annual capacity of 50,000 units, aiming to start production in the first quarter of next year.

Le Quang Dat, vice chairman of Kim Long Motors’ board of directors, stated,

Through cooperation with LG Energy Solution, a world-class battery company, we will be able to secure a stable supply chain and thoroughly manage quality.

“This will not only enhance the competitiveness of Vietnamese electric vehicles but also serve as an opportunity for Vietnam to leap forward as a center of clean energy industry in Asia and the world.”

Meanwhile, LG Energy Solution has been receiving a string of positive news from global companies in Vietnam, the United States, and Europe. Last month, it signed a 6 trillion won contract to supply ESS batteries to a customer presumed to be Tesla. In June this year, it entered into a supply contract for electric vehicles with China’s Chery Automobile, and in March, it signed battery supply contracts with Poland’s state-owned power company PGE and Taiwan’s energy management company Delta Electronics.

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LG Energy Solution Signs MOU with Vietnam’s Kim Long Motors for Battery Supply, source