To meet the surging demand for electric vehicles in China, Geely Auto and LG Chem have created a joint initiative to invest US$188m in the production and sales of new energy vehicle batteries.
The Chinese OEM Geely Auto is aiming to see 90% of its sales to come from an electrified fleet of mild hybrids, plug-ins and pure electric so has teamed up with South Korea’s LG Chem, which is one of the world’s biggest manufacturers of electric vehicle batteries.
The total investment will be split equally between both parties in the 50:50 joint venture and will help Geely reach its goal of launching more than 30 electrified vehicles within the next two years.
An Conghui, CEO and president of Geely Automobile Group, said: “Geely Auto has already created a strong supply chain network for the production and development of new energy vehicles. The signing of this joint venture agreement with LG Chem further strengthens our position as a leader in new energy vehicles, where we aim to create more value and better ownership experience for our consumers.”
The Chinese new energy vehicle market reached 1.25 million units in 2018, accounting for 62% of total global electric vehicle sales.
“This joint venture with China’s leading privately-owned automotive company, Geely Auto, can be seen as contributing to the progress of China’s overall electric vehicle industry,” said Kim Jong-Hyun, president of LG Chem’s Energy Solution.