LG Energy Solution Ltd., the pure-play vehicle battery maker under South Korea’s LG Group, will supply its 46-series cylindrical batteries to Chery Automobile Co., one of China’s top five automakers.

It is the first time a Korean battery manufacturer has signed a large-scale cylindrical battery supply contract with a Chinese automaker.

LG Energy Solution announced on Monday that it signed a six-year supply agreement with Chery Automobile for a total of 8 gigawatt-hours (GWh) of 46-series batteries.

The volume is enough to power approximately 120,000 electric vehicles.

Details on the contract value were not disclosed, but industry estimates the deal to be worth at least 1 trillion won ($731.58 million).

LG Energy Solution plans to begin full-scale supply early next year, with the batteries to be installed in Cherry Automobile‘s flagship EV models.

The 46-series batteries offer at least five times greater energy capacity and output compared to conventional cylindrical batteries, along with improved production efficiency, enhancing both driving range and overall performance of EVs.

LG Energy Solution said that the latest deal demonstrates the market’s recognition of its proprietary nickel-cobalt-manganese (NCM) 46-series solution, which offers superior performance in low-temperature environments and higher energy density compared to lithium iron phosphate (LFP) batteries, resulting in longer driving ranges.

The two companies have also agreed to actively discuss further collaboration to expand the battery supply to other EV models within the Chery Group.

“Only irreplaceable and differentiated customer value based on unrivaled technology can overcome the current slowdown in the EV market and dominate the upcoming supercycle,” said LG Energy Solution Chief Executive Officer Kim Dong-myung. “This contract will serve as a launchpad for expanding orders of our new 46-series form factor to global markets and securing our overwhelming market leadership.”

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