South Korea's top chemical firm, LG Chem LTD., announced on Monday that it has signed a big deal with Daimler AG to supply batteries for its Smart electric vehicles set to be launched in 2016.
Daimler, the German automaker known for its Mercedes-Benz brand, will install LG Chem's lithium-ion batteries into a portion of nearly 100,000 new two- and four-seat compact electric Smart models sometime next yet, according to a LG Chem release.
"LG Chem's battery business and technology have been acknowledged worldwide once again as our products are continuously being installed by major automobile makers from their commodity brands to premium vehicles", said Young Soo Kwon, the President of Energy Solution Company, LG Chem, in a company statement.
The specific amount of the deal has not been announced yet.
Back in February, LG Chem was the only lithium-ion battery maker to be invited to "Supplier Day' hosted by Daimler in Stuttgart, where the company had the chance to talk about strategies with a number of Daimler partners.
Daimler announced in 2014 that it would stop production of its in-house batteries and use LG Chem cells for its hybrid and electric vehicle batteries instead, as well as for stationary storage solutions, according to Reuters.
"LG Chem will continue to lead the EV battery market with differentiated technology to make us stand up as the global No. 1 battery manufacturer," Kwon said.
LG Chem now supplies EV batteries for 13 of the 20 biggest automakers, including Audi, Chevrolet, Ford, General Motors, Kia, Renault and Volkswagen, according to the release.
A recent study published by B3, a renowned market research firm, said that the EV battery market should grow up to $18.24 billion by 2020.