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July 11, 2022

LG battery deal agreed with Mahindra – report

Batteries would power M&M's new all electric SUVs.

By Graeme Roberts

South Korean battery maker LG Energy Solution will supply batteries for Mahindra & Mahindra’s first electric sports utility vehicle (SUV), a “source familiar with the matter” told Reuters on Monday.

The batteries would power the XUV400 SUVs, likely scheduled for delivery between the fourth quarter and January, the source added.

The source did not confirm the size of the supply deal, Reuters reported.

The news agency, citing a Mahindra statement, said that, before LG Energy Solution was split off from parent company LG Chem, Mahindra in 2018 signed a deal with LG Chem to collaborate on the supply and technology of lithium ion batteries based on nickel, cobalt and manganese chemistry.

LG Energy Solution declined to comment to Reuters and Mahindra reportedly did not respond immediately.

Mahindra last week raised US$250m from British International Investment for its new EV unit at a valuation of $9.1 billion, the report added.

Reuters said M&M planned to launch five electric SUVs over the next few years starting with the XUV400 in September. Those models were expected to contribute up to 30%, or about 200,000 units, of the automaker’s annual SUV sales by March 2027.

Its chief executive had earlier told Reuters Mahindra could consider investing in a battery cell company to meet future electrification needs.

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