“As we enter the EV era, we believe the deal will help us become a leading company in the battery market,” said Kim Jong-hyun, who heads LG Chem’s battery business division.

Volvo has pledged that every new model from this year would be equipped with hybrid or electric technology. The company has also announced that half of its sales will consist of fully electric cars by 2025.

The carmaker has been launching electric vehicle models under Volvo and its sub-brand Polestar in the increasingly competitive market. It faces growing challenges from other global car manufacturers, such as Volkswagen, Tesla and General Motors.

Along with Samsung CATL and Samsung SDI, LG Chem is one of the few large battery suppliers in the electric vehicle market. Last year, it was tapped as a battery supplier for German carmaker VW.

(jasonyeo@heraldcorp.com)