LG Chem To Supply 200 Mile Electric Vehicle Battery In 2016; But To Whom?

LG Chem has announced that it is planning on delivering 200 mile batteries in 2016. The real question now is "to whom"?

Jul 21, 2014 at 1:34PM

Lg Chem Michigan

LG Chem's Michigan Factory Currently Supplies GM With Lithium Batteries

Today, LG Chem announced that it is planning on delivering 200 mile batteries in 2016.

Volt And Spark Ev

GM Has Stated That Future Electric Vehicles Will Have 200 Miles Of Range

Here is the fun part. In making the statement, LG Chem's CEO Cho Suk-jeh DID NOT specifically call out the automaker(s) who have contracted with the company for their 2nd generation battery product.

As LG Chem already has many lithium battery supply deals in place with lots of EV makers today; let the speculation begin!

  • General Motors (NYSE:GM):  If you crack open any Chevrolet Volt or Cadillac ELR, you can find up to 17.1 kWh (2015 Volt) worth of LG Chem's batteries inside.  Starting this year (MY 2015) GM has also removed A123 batteries from inside the Spark EV in favor of 19 kWh's worth of LG Chem cells.  Additionally,  ex-CEO Dan Akerson had said GM was working on a 200 mile EV in the past
  • Renault-Nissan: Many of Renault's EVs today (think Zoe and Twizy) have LG Chem batteries inside, and just two months ago the two companies signed a memorandum of understanding to jointly develop the next generation of batteries.
  • Ford (NYSE:F): This seems unlikely given the automaker's strong love (and sales results) of all things extended range plug-in (think Fusion Energi, C-Max Energi).  Still, those all-electric Focus Electrics you see driving around today are powered by LG Chem...and Ford has shown enough initiative to start producing the EV in both the US and more recently in Europe.


Who Doesn't Love A Wild Card? (Volvo Plug-In Concept We Snapped At 2014 NAIAS)

  • Daimler/smart:  The German automaker found out recently that making your own batteries sounds like a good idea, but is really hard.  Daimler looked to unload its JV Li-Tec battery business last year, but all they got was a 1 Euro bid from LG Chem; which was about a billion less than they had hoped. Instead, they bought full ownership of Li-Tec  and plan to keep building cells in Kamenz, Germany, until at least, wait for it...2015!  After that they can rely on a new deal they have in place with, wait for it...LG Chem.
  • Volvo:  LG Chem and Volvo already have a working relationship in place with the hot-selling V60 Plug-In Hybrid; a vehicle that will morph into XC90 Plug-In Hybrid SUV shortly.  After that?  A long range, all-electric XC90 has been foretold by the company.
  • Others:  LG Chem is about to also produce batteries in China, and players like SAIC Motor Corp and Qoros (plus 2 other non-disclosed companies) have already recently signed up to use the South Korea-based battery maker's cells.  When will this factory, which is able to supply enough batteries for "more than 100,000 " cars, be ready?  By the end of 2015.

The only major OEM we can truly rule out is Tesla (NASDAQ:TSLA), as they have tied their wagon to Panasonic for any US Gigafactory production, and reportedly with Samsung SDI to help supply the upcoming Model X.

Regardless of who has tied-their-wagon to LG Chem, what we can say is that a 200 mile EV is now coming to a mainstream automaker, and it is coming soon!

InsideEVs and Jay Cole have no position in any stocks mentioned. The Motley Fool recommends Ford, General Motors, and Tesla Motors. The Motley Fool owns shares of Ford and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers