Published on : Sep 25, 2015
LG Chem is a well-known company of South Korea, dealing in manufacture of batteries and chemicals. LG Chem is planning to supply batteries to Chery Automobiles Co. to assist them manufacture next-generation electric vehicles (EVs). Mass production of the next-generation electric vehicles is predicted to begin from the end of 2015. Accordingly, the production is expected to add billions of won to sales. Chery Automobile is one of the leading automobile manufacturing company of China, headquartered in Wuhu, Anhui Province. The government of China founded the Chery Automobile Company in 1997 and it is a state owned corporation.
The latest deal will give LG Chem an opportunity to grab additional orders in coming few years. With mutual cooperation, LG Chem and Chery Automobile Company will strengthen the automotive industry and attract more businesses. So far, the company has successfully captured more than 50% of leading car-makers of China including local brands and joint ventures. Some of the big customers of LG Chem are Shanghai Automotive Industry Corporation, First Automotive Work Group Corporation, and Dongfeng Motor Corporation. These leading customers are the top three companies in the China’s automotive industry.
The government of China recently focused on a new auto manufacturing project, called as ‘New Energy Autos’, aimed at making eco-friendly automobiles. The new project aims at replacing around 30% of the new automobiles for public and government agencies with EV models by 2016. Earlier, the Chinese government aimed at targeting some of the major cities such as Shanghai and Beijing. Now the government plans to expand the services throughout the country by taking efforts to motivate people to buy electric vehicles. According to the reports from HIS, a multinational market research company, the count of non-fossil fuel vehicles in China is expected to reach 110,000 units till 2015. The non-fossil fuel vehicles in China is predicted to reach 655,000 units by 2020.