Photo: Faraday Future
Faraday Future has reportedly signed a supply deal with the South Koreans at LG Chem.
According to insiders, the battery maker would provide the American automaker with batteries for its electric vehicles. The Korea Herald notes that the $2.4 billion deal was signed in August, but it has not been declared yet because of the THAAD System, which is an acronym for the Terminal High Altitude Area Defense system that is designed to operate against rockets, and has affected Chinese- South Korean relations, as the source explains.
LG Chem representatives refused to comment on the potential deal, but sources close to the matter claim that the batteries will be made in China, at Faraday Future’s new factory, which is located in Huzhou. The South Korean supplier reportedly invested in the facility, which could produce electric vehicles with batteries made by LG Chem.
At the moment, Faraday Future is on a hiring spree, which has led to the hire of many talented and experienced executives from other automotive companies. Their first electric car is years away, but the investment made by a Chinese billionaire could go a long way for Faraday Future.
LG Chem has recently posted an operating loss because of declining sales so that the deal would bring new opportunities to the company. It is essential to remark that neither party confirmed or denied the agreement, which is a sign that discussions have taken place between the two potential business partners.
Faraday Future is also building a factory in the USA, which they said will be ready in 2018. The company is well funded, and it plans to use the best eco-friendly and sustainable materials and solutions to construct the plant.
At the same time, they want to finish the build as soon as possible, so that the factory could deliver the first production units by the end of the same year.
We believe that Faraday Future will succeed in delivering the first units to customers in 2019. The assumption is based on the fact that funding should not be a problem for Faraday Future, and that no other delays will come to the development process, but do not bet on that today, as the automotive industry has a way of crushing dreams from time to time.
LG Chem representatives refused to comment on the potential deal, but sources close to the matter claim that the batteries will be made in China, at Faraday Future’s new factory, which is located in Huzhou. The South Korean supplier reportedly invested in the facility, which could produce electric vehicles with batteries made by LG Chem.
At the moment, Faraday Future is on a hiring spree, which has led to the hire of many talented and experienced executives from other automotive companies. Their first electric car is years away, but the investment made by a Chinese billionaire could go a long way for Faraday Future.
LG Chem has recently posted an operating loss because of declining sales so that the deal would bring new opportunities to the company. It is essential to remark that neither party confirmed or denied the agreement, which is a sign that discussions have taken place between the two potential business partners.
Faraday Future is also building a factory in the USA, which they said will be ready in 2018. The company is well funded, and it plans to use the best eco-friendly and sustainable materials and solutions to construct the plant.
At the same time, they want to finish the build as soon as possible, so that the factory could deliver the first production units by the end of the same year.
We believe that Faraday Future will succeed in delivering the first units to customers in 2019. The assumption is based on the fact that funding should not be a problem for Faraday Future, and that no other delays will come to the development process, but do not bet on that today, as the automotive industry has a way of crushing dreams from time to time.
Google News