South Korea’s LG Chem has signed agreement to supply batteries for Changan Automobile’s its next generation plug-in hybrid-electric vehicles.

The Chinese vehicle manufacturer, which employs some 80,000 people, plans to begin production of hybrid-electric vehicles in 2016.

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LG Chem said it plans to complete construction of a battery plant in Nanjing, China, this year.

LG Chem already has battery supply agreements with Great Wall Motor and Dong Feng Motor, as well as leading global vehicle manufacturers including GM, Ford and Hyundai-Kia.

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