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 preorders 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.