LG Energy Solution Signs Major 1 Trillion Won Contract to Supply EV Batteries to Cherry Automobile

LG Energy Solution has announced a significant contract to supply electric vehicle batteries worth 1 trillion won to Cherry Automobile, one of the largest car manufacturers in China. This marks the first instance of a South Korean battery company supplying cylindrical batteries on a large scale to Chinese automakers.

On June 16, LG Energy Solution revealed that it signed a contract with Cherry Motors to deliver a total of 8 GWh (gigawatt-hours) of cylindrical batteries over a six-year period, from the end of 2025 to 2030. These batteries will be utilized in Cherry Motors’ flagship electric vehicle models that are distributed in Europe. The 8 GWh supply is sufficient for approximately 120,000 electric vehicles.

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

This contract not only signifies a new partnership but also opens the door for further discussions between LG Energy Solution and Cherry Motors regarding collaboration on additional electric vehicle models. It is particularly noteworthy as LG Energy Solution has gained recognition for its technological prowess and supply capabilities in a highly competitive Chinese battery market, which is predominantly controlled by local firms like CATL, BYD, and CALB.

In a strategic shift, Cherry Motors has opted to incorporate LG Energy Solution’s Ternary System (NCM)-based 46 series battery, which boasts high power, energy density, and excellent low-temperature performance. The 46 series features a large cylindrical design with a diameter of 46mm and a height ranging from 80 to 120mm. Compared to the existing 2170 standard, this battery achieves five times the output capacity and more than six times the energy capacity. Notably, it exhibits high efficiency in cold conditions, offering rapid charging and superior thermal management. This gives it a clear edge over lithium iron phosphate (LFP) batteries, which are widely used by Chinese manufacturers.

LG Energy Solution is set to commence mass production of the 46 series in the latter half of this year. The manufacturing process has been streamlined, resulting in reduced costs and improved standardization, which enhances mass production and supply chain stability. The industry views the 46 series as a viable alternative to next-generation battery technologies such as all-solid, sodium-ion, and lithium-manganese-rich batteries.

The 46 series also offers spatial efficiency when combined with cell-to-pack (CTP) technology, while its cylindrical parallel design enhances safety by distributing risks effectively, including fire hazards. An official from LG Energy Solution stated, “This contract represents a pivotal moment in reinforcing our technical leadership in the premium cylindrical battery market.”

In addition to this contract, LG Energy Solution is aggressively pursuing 46 series orders in the global market, having signed a significant supply agreement with U.S. electric vehicle startup Rivian in November 2024. The company is also actively engaging with European and Japanese automotive manufacturers.

Earlier this year, LG Energy Solution introduced the ‘CAS (Cell Array Structure),’ a high-safety, high-power module and pack solution based on 46 series cells at the ‘Interbattery 2025’ event. The CAS structure enhances safety and battery longevity by minimizing heat diffusion between cells. The company is expediting the establishment of production lines dedicated to the 46 series in the U.S., Poland, and Korea, aiming for a future production capacity of several tens of GWh annually.

Kim Dong-myung, CEO of LG Energy Solution, remarked, “With this supply contract, we aim to expand orders for the 46 series, a new form factor, to dominate the market.”