Will LG Chem supply battery for BMW’s hybrids?

[THE INVESTOR] Battery firm LG Chem has reportedly inked a supply deal with German luxury sedan maker BMW. The deal is reportedly the second of its kind with the German firm, following the previous one in the latter half in 2015.

“LG Chem has stricken a deal to supply its 48-volt lithium-ion battery to BMW with the aim to produce the battery from 2019,” an industry official was quoted by online news outlet News 1 as saying.

“I cannot unveil the exact amount, but the deal will be worth, as far as I know, hundreds of billions of won, surpassing the previous deal,” the official added.

The battery, the so-called low voltage system, is usually fitted in hybrid vehicles, which utilize both a combustion engine and an electric motor.

BMW currently rolls out hybrids i3 and i8, both of which feature batteries manufactured by Samsung SDI, LG Chem’s compatriot rival.

Samsung SDI, however, has reportedly lost its exclusive partnership for the i3 and i8 as the German carmaker recently started to diversify the battery supply chain.

For Samsung SDI, the German carmaker, with which it has continued its partnership since 2009, is one of the largest customers.

LG Chem said it does not disclose its customers and refused to comment on the reported battery supply to BMW.

By Kim Young-won (wone0102@heraldcorp.com)