On January fifth, LG Chemicals announced that it will supply Lithium ion batteries to Eaton starting in earnest this November and continue for four consecutive years. It will begin by a hybrid commercial vehicle to plug-in the hybrid electric vehicles (PHEV) and expand the model to supply.
Eaton, which holds more than 90 percent of the U.S. commercial hybrid vehicle market, will install the batteries in powertrain systems and sell them to global commercial electric vehicles makers, including Navistar, Peterbilt, Kenworth and IVECO.
LG Chem plans to expand the assembly line of Compact Power Inc., its U.S. unit based in Troy, Michigan, in anticipation of increasing batteries supply to Eaton.
Representatives said the South Korean firm will first begin by supplying batteries for commercial HEVs and then expand its supply for plug-in hybrid electric vehicles (PHEVs), which have batteries that can be recharged when connected to a power outlet.
HEVs are vehicles that are powered by both electricity and gasoline. Eaton is the latest addition to LG Chem’s growing customer base, including GM, Hyundai Motor, Kia Motors and CT&T.
“Supplying batteries to Eaton means that LG Chem will be ahead in the global commercial hybrid vehicle market since the North American commercial vehicle market represents over 50 percent of the global market,” said LG Chem Vice Chairman Kim Ban-seok.
This is a secure beginning as LG Chemicals has been domestically supplying GM, Hyundai, Kia, CT&T, and started to make inroads into the foreign market. Not only will LG Chemicals sell the battery cell, but also the battery management system (BMS) and distribute it in pack form.
LG Chemicals will be the first to manufacture the cells at an electric-specified factory and transport them to the local subsidiary in the United States where it will be assembled in a pack form. Then, Eaton will install it into the power train system of commercial vehicles and supply the complete units to Navistar, Peterbilt, Kenworth, and IVECO.