Faraday Future Signs $2.4 Billion Deal With LG Chem For Battery Cells

Sep 22, 2016 04:16 AM EDT | Sovan Mandal

Faraday Future

LAS VEGAS, NV - JANUARY 06: The Faraday Future FFZERO1 Concept, a high performance electric vehicle built upon FF's Variable Platform Architecture (VPA), a modular engineering system optimized for electric vehicles, is on display at CES 2016 at the Las Vegas Convention Center on January 6, 2016 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs through January 9 and is expected to feature 3,600 exhibitors showing off their latest products and services to more than 150,000 attendees.
(Photo : Photo by Alex Wong/Getty Images)

Faraday Future is believed to have signed a deal with LG Chem for the supply of battery that would power its upcoming EV, Korean Herald has claimed in a report.

The deal is estimated to be worth a massive $2.4 billion for an unspecified number of battery cells. However, as Electrek speculated, the deal could be for enough battery cells to power about 200,000 EVs. It is based on the assumption that a kWh costs $145 with about 80 kWh allocated for each EV.

The Korean Herald report, however, is a bit confusing in that it claimed that the deal was signed with Faraday Future, but to power the upcoming LeSee EV from LeEco.

The way the entire thing has panned out in the real world is no less interesting considering that the Chinese tech company LeEco happens to be one of the biggest financiers of Faraday Future. The batteries in turn would be made at LG Chem's plant in Huzhou, China. Further, LeEco too is likely to use the same batteries for its LeSee EV considering that it too is based on the same Variable Platform Architecture (VPA) platform that underpins the first Faraday Future vehicle as well.

LeEco had earlier disclosed plans to set up a plant in China with a capacity of producing 400,000 LeSee-like EVs in the future while Faraday Future EVs would be assembled at its upcoming plant in Nevada that has an annual capacity of 140,000 vehicles. Recently, LeEco announced it has secured funding to the tune of over $1 billion which will ensure it sticks to the schedule of launching its Tesla rivalling fully autonomous EV withing the next three years itself.

Faraday Future has also been in the news as of late, with a couple of its first prototype vehicles having been spotted undergoing tests, first in Los Angeles and then in the Morivu desert. From what seems evident, the first vehicle is going to be a crossover of sorts, which means seating for seven at least.

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