Freudenberg e-Power Systems and LG Energy Solution have signed a multi-year contract for the supply of lithium ion battery cell modules.

With a total capacity of 19 GWh, Freudenberg is expanding its capacities to meet rising demand and ensure the best possible supply for its customers in commercial vehicle application in North America and Europe.

The deal covers the supply of lithium ion battery cell modules, whose properties make them particularly suitable for use in commercial vehicles.

Cell modules supplied by LGES are integrated by Freudenberg e-Power Systems in their battery packs. The cell modules will be assembled at Freudenberg e-Power Systems’ XALT gigafactory in Midland, Michigan.

With the recent acquisition of XALT, Freudenberg e-Power Systems is investing a further double-digit million sum in the expansion of its battery business and its capacities.

“Our partnership with FEPS will serve as a launch pad to lead in the commercial vehicle battery market which has the potential for exponential growth,” said Dong-Myung Kim, LGES advanced automotive battery division president.