LG Energy Solution has signed a landmark battery supply agreement with China’s state-owned automaker Chery Automobile, marking the first time a South Korean battery manufacturer will deliver cylindrical batteries to a Chinese carmaker on a trillion-won scale.
The company announced on Jun. 16 that it had entered into a five-year contract to supply Chery with a total of 8 gigawatt-hours (GWh) of batteries, with shipments set to begin in early 2026 and continue through 2030. The batteries are expected to be installed in Chery’s flagship electric vehicle models. An 8 GWh capacity is enough to power approximately 120,000 EVs. While the contract value was not disclosed, industry estimates place it at over 1 trillion won (approximately $720 million).
The batteries being supplied are part of LG’s next-generation “46 series” cylindrical cell lineup. The 46 series refers to batteries with a 46mm diameter and a height ranging from 80mm to 125mm. Compared with the existing 2170 format—21mm in diameter and 70mm in height—the new series offers more than five times the energy capacity and output, improving both vehicle range and performance. The format is also recognized for its enhanced manufacturing efficiency.
The batteries will reportedly be delivered to Chery’s European manufacturing facility. Chery, currently the world’s seventh-largest EV maker, operates a plant in Barcelona, Spain, and has been ramping up efforts to expand in the European market. The agreement was signed with O&J Automotive Netherlands, a wholly owned subsidiary of Chery Automobile.
Industry observers are watching closely to see whether the deal signals a broader opening for South Korean battery makers in China’s highly protected automotive sector. Chinese automakers have traditionally favored domestic suppliers, posing significant entry barriers for foreign firms.
“This supply deal carries major significance,” said Kim Dong-myung, CEO of LG Energy Solution. “It will serve as a key stepping stone for expanding the global presence of our 46 series batteries and securing a stronger foothold in the EV battery market.”
