LG Chem to Provide Hybrid Batteries to Changan Auto

LG Chem, which is currently the biggest battery maker in South Korea, will provide hybrid-car batteries to Changan Automobile starting the second half of this year. Citing an official statement issued by the South Korean company, LG Chem and Changan Auto also signed a partnership for the development of hybrid and electric car batteries, but specific terms of the deals are yet to be disclosed.

LG Chem is already collaborating with a number of automakers, including Hyundai and Kia, as well as General Motors. The latter uses the batteries for the Chevrolet Volt, a model that is due to arrive in October this year.

The Volt will be able to cover a distance of around 64 kilometers on a single charge. Because the 400-pound battery would not be enough for long trips, Chevy Volt will also feature a 1.4-liter gasoline-powered engine, responsible for recharging the batteries.

Batteries and green vehicles, including hybrids or electric cars, are expected to grow in popularity in the upcoming years, especially in the context of the current economic environment that is still pushing automakers towards this alternative source of energy.

LG Chem said back in 2009 that global demand for electric cars is likely to reach the 3.3 million unit mark by 2013, from the 900,000 unit figures reported in 2009. Furthermore, numbers will continue to grow until 2015 when demand is likely to exceed the 4.6 million unit milestone.

This basically means that companies involved in the battery sector will increase their business as well and the South Korean company expects to reach 10 trillion won ($8.6 billion) by 2015.