LG Chem signed deals to supply batteries to two major Chinese automakers, it said on Sunday.
With the latest deal with Shanghai Automotive, the largest Chinese automaker, and Qoros Automotive, a Chinese-Israeli joint venture, LG Chem now has four major Chinese customers including First Automobile Works and Changan Automobile. The four carmakers sold a total of 10.24 million cars last year with their combined market share accounting for 60 percent of the market there.
LG Chem said it has already received pre-orders for more than 100,000 units from the four automakers.
"We're finalizing a deal with a Chinese partner to establish a joint venture there," President Kwon Young-soo said. "We'll choose a location to build a battery production plant in China and draw up more detailed plans in the second half of this year."
The Chinese government recently announced plans to put 5 million electric vehicles on the road by 2020. IHS, a global market researcher, predicted that China's eco-friendly car market will expand at the world's fastest rate, posting 20-fold growth between 2013 and 2020.