LG Chem to Supply EV Batteries to Indian Carmaker Mahindra

LG Chem has signed a seven-year contract to supply electric car batteries to Indian automaker Mahindra.

Mahindra on Monday announced the deal with the Korean company worth hundreds of billions of won. Under the contract, LG Chem will be the sole battery supplier for the automaker's new electric vehicle model, scheduled to roll out in 2020.

The move will secure a foothold for LG Chem in India's electric vehicle battery market. The country's rapidly growing automobile market is now the world's fourth largest.

Mahindra is a multinational carmaker that took over Ssangyong Motor in 2010.

India represents an important alternative market for Korea as China, the world's largest vehicle market, has virtually shut out Korean companies.