LG Energy Solution has signed a major deal to supply its next-generation 46-series battery cells to Chery Automobile in China. The agreement marks a breakthrough for Korean firms in the heavily protected Chinese electric vehicle market. Over six years, LG will deliver 8 gigawatt-hours of cylindrical cells designed for high-performance electric vehicles. The batteries, which will begin mass production later this year, will power around 120,000 EVs. Industry insiders say Chery may use them in upcoming premium models.
Although LG did not disclose which vehicles will carry the batteries, sources suggest its nickel-cobalt-manganese (NCM) cells offer competitive advantages. LG’s 46-series battery design measures 46mm in diameter and up to 120mm in height. Compared to older 2170-format cells, the new form factor delivers higher output and greater energy density. Moreover, the NCM chemistry provides better thermal stability and charging speed than China’s favored lithium iron phosphate batteries. The company also claims a longer driving range as another key advantage.
The move comes as global demand for EVs slows and battery makers seek new growth strategies. LG Energy Solution had focused on energy storage systems in recent quarters. However, this deal marks its first EV supply contract in 2025. The company views the 46-series battery as a gateway to broader global expansion. Chery, a fast-growing Chinese automaker, offers an ideal launch partner for reentering the EV supply chain.
Competition in China’s EV battery market remains fierce and nationalistic. Chinese firms like CATL and BYD hold over 95 percent of market share, according to recent industry data. Government policies strongly favor domestic suppliers, making it difficult for outsiders to compete. LG’s success in securing the deal demonstrates both persistence and innovation. Company officials say this win proves that advanced technology can still break through protectionist walls.
Beyond its application in Chery vehicles, LG’s new battery form factor offers cost advantages. Simplified production and fewer required cells lower manufacturing expenses. Experts estimate dry electrode tech could reduce total costs by up to 50 percent. These innovations help make the 46-series battery more attractive to global automakers like Mercedes-Benz and Rivian. While solid-state and sodium-ion batteries remain years away, LG’s offering already meets commercial standards.
Chery Automobile, founded in 1997, continues to grow its international presence. Last year, it sold over 2.4 million vehicles, including 1.1 million exported units. The company’s lineup spans hybrids, combustion engines and pure electric vehicles. Its global brands include Omoda, Jaecoo and Exeed. LG hopes the Chery deal paves the way for future partnerships with automakers beyond China.
