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South Korean battery-maker LG Chem signed a partnership deal with American tech startup Faraday Future to supply electric vehicle batteries, the two firms announced Tuesday.
The local battery firm said the cells would be incorporated into Faraday Future’s Variable Platform Architecture, the automaker’s unique platform, which enables users to extend EV battery capacity.
“LG Chem worked closely with Faraday Future to develop a tailored cell chemistry to optimize the range and safety of our mass production battery hardware,” said Tom Wessner, vice president of Faraday Future’s global supply chain, in the company’s press release.
LG Chem’s energy business head, Lee Woong-beom, said, “We are proud to work alongside Faraday Future as we work together to create the next generation of electric vehicles.”
Neither firm, however, disclosed the time or volume of the battery supply.
Faraday Future, which has been dubbed a “Tesla killer,” came into the spotlight at the Consumer Electronics Show early this year unveiling its concept EV with a top speed of more than 320 kilometers per hour. Financed by Chinese tech giant, LeEco, the automaker broke ground on a $1 billion assembly plant near Las Vegas in April.
The reports on the latest deal, however, did not help LG Chem’s stock price. The battery firm’s stock price traded at 238,000 won ($214) on Tuesday, down 1.45 percent from the previous day.
“Because the volume of the deal is likely to be small -- reportedly around 50,000 units -- with unspecified time frame, it may not significantly affect the company’s profits in the short term,” said Lee Dong-wook, an analyst from Kiwoom Securities.
LG Chem’s EV battery business, which has not yet seen a surplus, is expected to reach the break-even point in the fourth quarter and turn around in the first quarter of next year with the rollout of the all-electric Chevrolet Bolt in October, Lee added.
By Shin Ji-hye (shinjh@heraldcorp.com)
The local battery firm said the cells would be incorporated into Faraday Future’s Variable Platform Architecture, the automaker’s unique platform, which enables users to extend EV battery capacity.
“LG Chem worked closely with Faraday Future to develop a tailored cell chemistry to optimize the range and safety of our mass production battery hardware,” said Tom Wessner, vice president of Faraday Future’s global supply chain, in the company’s press release.
LG Chem’s energy business head, Lee Woong-beom, said, “We are proud to work alongside Faraday Future as we work together to create the next generation of electric vehicles.”
Neither firm, however, disclosed the time or volume of the battery supply.
Faraday Future, which has been dubbed a “Tesla killer,” came into the spotlight at the Consumer Electronics Show early this year unveiling its concept EV with a top speed of more than 320 kilometers per hour. Financed by Chinese tech giant, LeEco, the automaker broke ground on a $1 billion assembly plant near Las Vegas in April.
The reports on the latest deal, however, did not help LG Chem’s stock price. The battery firm’s stock price traded at 238,000 won ($214) on Tuesday, down 1.45 percent from the previous day.
“Because the volume of the deal is likely to be small -- reportedly around 50,000 units -- with unspecified time frame, it may not significantly affect the company’s profits in the short term,” said Lee Dong-wook, an analyst from Kiwoom Securities.
LG Chem’s EV battery business, which has not yet seen a surplus, is expected to reach the break-even point in the fourth quarter and turn around in the first quarter of next year with the rollout of the all-electric Chevrolet Bolt in October, Lee added.
By Shin Ji-hye (shinjh@heraldcorp.com)
