LG Chem Signs Battery Deal With Chinese EV Bus Manufacturers

JUL 7 2015 BY MARK KANE 7

LG Chem is hard at work

LG Chem is hard at work

LG Chem collected two more Chinese companies who would like to use lithium-ion batteries in their electric vehicles.

The new agreement opens a new area of electric buses for LG Chem, as the Korean company mostly supplied carmakers.

Nanjing Golden Dragon Bus and Dongfeng Commercial Vehicle intend to produce large- and small-sized electric city buses.

“Nanjing Golden Dragon Bus, established in 2000, is one of the top-tier producers of electric buses in China, with an annual capacity of about 8,000 units. Dongfeng Commercial is an affiliate.”

LG Chem’s statement indicates that batteries for buses could be more profitable than for cars, since they are selling 60-200 kWh per bus, instead of 10-30 kWh for other EVs.

“The LG Chem statement quoted President Kwon Young-soo as saying, “The Chinese EV market will boom after 2016. LG Chem is ideally positioned to lead the market, given the number of clients we have secured.”

KDB Securities, a local brokerage, expects demand for EVs in China to reach 350,000 by 2016 from an estimated 200,000 this year, with leading car manufacturers introducing affordable models.

“LG Chem will benefit most,” KDB said in a report. “Our share price target for LG Chem has been revised upwards by 9 percent to 360,000 won from 330,000 won.”

Source: The Korea Times

Categories: Bus

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7 Comments on "LG Chem Signs Battery Deal With Chinese EV Bus Manufacturers"

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Ambulator
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Ambulator

Even 200 kWh seems a little small. BYD is citing 324 kWh for one of their buses.

LuStuccc
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LuStuccc

Why ain’t there any american company making good electric buses?

JakeY
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JakeY

I guess you don’t count the Proterra as a good electric bus?

http://insideevs.com/proterra-introduces-longer-range-electric-buses-up-to-180-miles/

Lensman
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Lensman

“LG Chem’s statement indicates that batteries for buses could be more profitable than for cars, since they are selling 60-200 kWh per bus, instead of 10-30 kWh for other EVs.”

I can’t imagine why. How does selling 8000 x ~130 kWh stack up against selling, say, 40,000 x ~48 kWh for nominally “200 mile” EVs? LG Chem will be supplying both the Leaf 2.0 and the Bolt, so 40,000 per year shouldn’t be a difficult sales target, assuming LG Chem can supply that many batteries and assuming Nissan and GM are both serious about selling the cars in large numbers. I’m fairly sure Nissan really does want to sell as many Leaf 2.0’s as it can, since they have Leaf factories in three countries.

Now, if LG Chem knows that GM is going to sell the Bolt in only Compliance Car numbers, then LG’s statement makes more sense.

Mark C
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Mark C

I hope LG Chem doesn’t take over the entire market, less Tesla. Without enough competition from other manufacturers, they could start to act like a monopoly. By that, I mean lack of innovation and slowly rising instead of decreasing pricing.

JakeY
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JakeY

Nissan is still holding out with their AESC (joint venture with NEC). BYD is still growing in China too.

However, if the rumors are true that Nissan will switch to LG Chem, then LG Chem will likely be a large majority of the market (with Tesla/Panasonic being second, perhaps a close one depending on how the Model 3 goes).