LG Energy Solution Secures 1 Trillion Won Deal to Supply EV Batteries to Cherry Automobile

LG Energy Solution is set to supply electric vehicle batteries worth 1 trillion won to Cherry Automobile, one of China’s top five automobile manufacturers. This marks the first significant supply of cylindrical batteries for electric vehicles from a domestic battery company to Chinese automakers.

On June 16, LG Energy Solution announced that it has signed a contract with Cherry Motors to provide a total of 8GWh (gigawatt-hours) of cylindrical batteries over a six-year period. The supply will commence at the end of 2025 and continue until 2030, with the batteries destined for Cherry Motors’ flagship electric vehicle models to be distributed in Europe. The 8GWh capacity is sufficient for approximately 120,000 electric vehicles, and industry estimates suggest the contract’s value is around 1 trillion won.

Founded in 1997, Cherry Motors is a state-owned Chinese car manufacturer that boasts various brands, including Cherry, EXEED, and Omoda. By 2024, the company reported annual sales of 2.4 million units, with 1.1 million of those being exported, solidifying its position as a leading export-driven automobile company in China.

This supply agreement is a significant step as LG Energy Solution and Cherry Motors are in discussions to extend their collaboration to other electric vehicle models within the company. The contract also signifies LG Energy Solution’s recognition for its technological prowess and supply capabilities in the competitive Chinese battery market, which is predominantly dominated by domestic firms such as CATL, BYD, and CALB.

Cherry Motors has chosen to implement LG Energy Solution’s Ternary System (NCM)-based 46 series battery, known for its high power, energy density, and low-temperature performance, diverging from its usual procurement practices. The 46 series features a large cylindrical design, measuring 46mm in diameter and between 80mm to 120mm in height. Compared to the existing 2170 standard, this new design enhances output by five times and energy capacity by over six times. Notably, it retains high efficiency even in cold weather due to its rapid charging and discharging capabilities and superior thermal management. It also offers clear advantages over lithium iron phosphate (LFP) batteries, commonly used by other Chinese manufacturers, in terms of mileage and output.

LG Energy Solution aims to begin mass production of the 46 series batteries in the latter half of this year. The manufacturing costs are expected to decrease due to fewer processes required per unit of energy, and the standardization benefits mass production and supply chain stability. Industry experts view the 46 series as a promising alternative to next-generation electric vehicle battery technologies such as all-solid, sodium-ion, and lithium-manganese-rich batteries. The design’s space efficiency can be enhanced when combined with cell-to-pack (CTP) technology, and its cylindrical structure improves safety by distributing risks associated with fires.

A representative from LG Energy Solution remarked, “This contract is a pivotal moment in establishing our technical leadership in the premium cylindrical battery market.” The company is actively pursuing additional orders for the 46 series globally, having signed a significant supply agreement with U.S. electric vehicle startup Rivian in November 2024, and is also in talks with European and Japanese automakers.

Additionally, LG Energy Solution recently unveiled its ‘CAS (Cell Array Structure)’, a high-safety, high-power module and pack solution based on the 46 series cells, at the ‘Interbattery 2025’ event held earlier this year. The CAS design maximizes safety and extends battery life by minimizing heat diffusion between cells. LG Energy Solution is accelerating the establishment of dedicated production lines for the 46 series in the U.S., Poland, and Korea, with plans to achieve production capacity in the tens of GWh annually in the future. CEO Kim Dong-myung stated, “With this supply contract, we will expand our orders for the 46 series, a new form factor, to dominate the market.”