LG Chem is to supply lithium ion batteries for commercial hybrid electric vehicles to Eaton for four years starting next November.
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Eaton, which holds more than 90% of the US commercial hybrid vehicle market, will install the batteries in powertrain systems and sell them to global commercial vehicle makers, including Navistar, Peterbilt, Kenworth and Iveco, Reuters reported.
LG Chem plans to expand the assembly line at Compact Power, its US unit based in Troy, Michigan, in anticipation of increasing batteries supply to Eaton, the company said in a statement.
The firm will first supply batteries for commercial HEVs and then expand its supply for plug-in hybrid electric vehicles (PHEVs).
Eaton is the latest addition to LG Chem’s growing customer base, including GM, Hyundai Motor, Kia Motors and CT&T.
“Supplying batteries to Eaton means that LG Chem will be ahead in the global commercial hybrid vehicle market since the North American commercial vehicle market represents over 50% of the global market,” said LG Chem vice chairman Kim Ban-seok.
He added that the company would continue to aggressively expand into various industrial battery markets to become a leading global supplier.
