October 06, 2023 12:31
LG Energy Solution has landed a 10-year deal to supply rechargeable batteries for electric cars to Toyota in the U.S. from 2025.
The deal is for an estimated 20 GWh of batteries for 250,000 electric cars valued at around W30 trillion (US$1=W1,351).
It raises the cumulative orders won by Korea's three main battery makers to W1 quadrillion. LGES said in July that its order backlog until the second quarter already totaled W440 trillion. SK On said its order backlog stood at W290 trillion and Samsung SDI's is estimated at around W260 trillion.
Based on last year's sales, LGES has secured the equivalent of 17 years' worth of orders, SK On 40 years' worth and Samsung SDI 13 years' worth.
LGES' latest order from a Japanese carmaker is a testament to the competitiveness of Korean battery makers.
Toyota is a latecomer to the EV market but holds the largest number of battery patents with more than 1,300. It is researching its own solid-state batteries but opted for LGES for now.
The U.S., Canada and European countries are offering billions in incentives to entice Korean battery makers to build factories there, hoping to create jobs and secure a state-of-the-art technological ecosystem.
Yoon Song-hun at Chungang University said, "A combined order backlog of W1 quadrillion is unprecedented in Korea. But this is happening in the battery industry, where Korean battery makers have a head start, unlike other industries where Korea often had to catch up with other advanced countries."
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