LG Chem To Supply Batteries To Faraday Future

1 year ago by Eric Loveday 37

Rendering Of Faraday Future's North Las Vegas Site

Rendering Of Faraday Future’s North Las Vegas Site

LG Chem lithium-ion battery cell

LG Chem lithium-ion battery cell

LG Chem has reportedly inked a multi-billion dollar battery supply deal with Faraday Future.

As korea herald reports:

“LG Chem one of the world’s largest electric vehicle battery makers, has reportedly struck a supply deal worth 2.7 trillion won (US$2.40 billion) with Faraday Future, the EV business arm of Chinese internet firm LeEco.”

“The deal was sealed in August, but the announcement has been delayed due to the Korean government’s recent decision to deploy the US advanced missile system Terminal High Altitude of Area Defense here.”

The LG Chem cells are expected to be put to use in the LeSEE, a so-called “Tesla killer” that boasts these claimed specs:

  • Top speed: 130 mph
  • Production date: Unknown
  • Range: Unknown
  • Price: Unknown
Faraday Future Presented The FFZERO1 Concept In January In Las Vegas

Faraday Future Presented The FFZERO1 Concept In January In Las Vegas

Even though basically nothing is known, we can still say that LeEco has been on a bit of a roll lately with raising over $1 billion recently and announcing that it will begin construction on a $2 billion factory in China with output of up to 400,000 units annually.

Korea Herald adds:

“Faraday Future has been ratcheting up its efforts to increase its foothold in the EV market, recruiting seasoned researchers, including Bart Nabbe, who used to take part in Apple’s project to develop electric cars.”

“The Chinese firm has also attracted talent from high-end automobile makers such as BMW and Tesla.”

Good luck Faraday…we eagerly await your Tesla killer.

Source: Korea Herald

Tags: , , ,

37 responses to "LG Chem To Supply Batteries To Faraday Future"

  1. MikeG says:

    None of those specs listed are of Tesla-killing caliber.

  2. Brian says:

    Either Faraday Future is very good at keeping a secret, or they are one of the largest scams on earth.

    1. Four Electrics says:

      There is no evidence that FF is a scam. If you would claim that lack of a car is evidence of a scam, I would retort that, by that standard, Apple is a scam, too. There is no reason to give away your hand until closer to launch, unless you are Tesla and need to sell stock and/or take deposits to finance the project.

      1. speculawyer says:

        Apple is a scam. Charges much more than everyone else. Gets rid of the headphone jack because they know better than you. Walled garden.

        1. alohart says:

          Billions of satisfied users of Apple products must love to be scammed. One would think that this humongous scam would have been discovered after all these years, but Apple must be really good at fooling people.

          1. Yogurt says:

            They do have tons of satisfied customers but when I see a company sitting on top of a 200 plus billion pile of cash and raking in insane profit margins I think they are screwing their customers…

            If there cuatomers are happy more power to em but I wont be contributing…

            1. Priusmaniac says:

              If I was Apple I would invest in colonizing space, it is the only onerous activity that is up to the task of balancing their huge gains. 🙂

      2. ffbj says:

        There is no direct evidence that it is not a scam…nor that you are telling us this:
        https://www.youtube.com/watch?v=qjGRySVyTDk

      3. Rob Stark says:

        Apple Car can’t be a scam when Apple will not even publicly admit it exist.

        How can you scam people if you refuse to tell them about the con?

        1. Pushmi-Pullyu says:

          Indeed, the attempt above to equate Apple’s secret car project with Faraday Future’s ultra-hyped vaporware, is one of the most ridiculous things I’ve ever seen posted to InsideEVs.

          The contrast could hardly be bigger!

    2. RexxSee says:

      They keep the secret.

      1. RexxSee says:

        faraday future fleet prototype spotted testing in the wild

    3. zzzzzzzzzz says:

      They are not scam, they don’t ask you for money for whatever excuse.
      Developing a new car model takes years even for experienced automaker, and they are just startup.

      1. Pushmi-Pullyu says:

        zzzzzzzzzz said:

        “Developing a new car model takes years even for experienced automaker…”

        That’s right, which is why it was doubly ridiculous for FF to claim, in its very first press release, that it would be putting a mass produced car into production within two years.

        Maybe it’s not a scam. Maybe it’s just that FF is run by someone who absolutely, totally, doesn’t have a clue.

        1. JyKiaNiroPHEV says:

          Bingo. FF is run by former tesla head. Absolutely, clueless.

  3. Yogurt says:

    I wonder when we will hear of LG building a new massive battery factory??
    Surely they dont have any spare capacity with all the deals they have with various auto makers…
    I dont think FF and LeEco are a scam at all…
    With no specifics on products or prices it is hard to even speculate wether they will be sucessful…

    1. Four Electrics says:

      The need for a gigafactory has been over-hyped. Billionaires tend to have “great man syndrome” — they went to be seen as great men doing great deeds. LG is perfectly capable of scaling their many existing plants around the world.

      1. Nick says:

        Well, that and the very simple current global cell production vs need equation.

      2. Pushmi-Pullyu says:

        “Four Electrics” said:

        “LG is perfectly capable of scaling their many existing plants around the world.”

        Sure, they can. So why aren’t they doing that?

        I confess, it completely baffles me that LG hardly increased its manufacturing capacity at all in the first half of this year. I’d think they would be “busy as a one-armed paper hanger” with ramping up to supply all their new customers!

        http://insideevs.com/ev-lithium-ion-battery-suppliers-outlook-h1-2016/

        1. JyKiaNiroPHEV says:

          Your so right. Why did LG open only one plant in China THIS YEAR?

  4. DTM says:

    Looking at the concept, I’m convinced they could fly high in the aviation market

    I still think it’s money laundry

  5. Alaa says:

    I totally forgot about these guys. Are they still there?

    1. Pushmi-Pullyu says:

      Their vaporware certainly is.

  6. James says:

    As of last week, nothing has been done on their Nevada factory except some grading, which they were doing months ago, and they had no Nevada employees. Either it’s the worst grading crew in the world, or something is not quite right. The Gigafactory went up like the God of Cars blew a dust storm that turned into a factory. I used to work on Cheesecake Factory restaurants, which were $8-15M buildings, and we went from grading to a working restaurant in about three months if all the permits fell into place. FF still doesn’t pass the smell test for me, but I’d be glad for them to prove me wrong.

    1. Yogurt says:

      The Nevada factory was on hold waiting for the Nevada goverment to make their utility and infastructure upgrades…
      The Nevada purse string holder decided that FF had questionable funding so he would not aprove Nevadas gov part of the project…
      Checking FFs funding is something you should obviously do prior to signing a contract with them….
      I think it has sense been approved but I am not positive…

      FF and LeEco have been hiring big name people left and right and have raised a billion in funding and received Chinas approval for to build a 2 billion dollar factory over there in just the last couple of months…

      If they are scammers (which I doubt) they are some of the greatest in the world…

      If Nevada is still holding them up they will probably get pissed at some point and move there factory else where…

      1. Rob Stark says:

        The financing picture changed when the Chinese stock market had a major pullback.

        But the ship seems to be righted.

      2. Mister G says:

        If FF is building a factory in China why build one in the USA? Most Americans don’t care about where their stuff is made…Americans mostly want cheap stuff. An EV made in China and sold in America will be more profitable than an EV made in the US. Foxconn pays Chinese workers $300 a month to make smartphones.

        1. Pushmi-Pullyu says:

          Mister G asked:

          “If FF is building a factory in China why build one in the USA?”

          Several of the large red flags I see waving regarding Faraway Faraday Future; warning signs about the concept of a Chinese entrepreneur coming to the USA to set up a company to make cars here, and sell them back in China. Using batteries which are of course imported from… China.

          No part of that makes any sense to me. At all.

  7. bogdan says:

    Top speed: 130 mph
    Production date: Unknown
    Range: Unknown
    Price: Unknown

    Who said it’s a Tesla killer?
    It’s the other way around. Tesla is a FF killer.

    FF is late at the party and smells like scam.
    They just show empty hulls that are not even concepts. Forget about production EVs.

    1. Kdawg says:

      Phase 1: Start Company FF
      Phase 2: ?
      Phase 3: Profit

  8. wavelet says:

    Yes, I saw that rumor ((note the “reportedly” — it’s not an actual announcement from either company). That said, if it were true, I’d expect it to be kept under wraps until they’re actually ready to announce a car.

    I still can’t take FF seriously, given the immense investment in hype with zero prototypes (or even tentative specs or plans) to show for it.
    Fine that they’re paying humongous salaries to lots of ex-Tesla and other auto-company employees
    http://insideevs.com/faraday-future-poached-a-ton-of-former-tesla-employees/
    But what are all those folks actually doing?

    The FFZERO is not just a concept, it’s a concept for a 1000hp, 200mph race car. That doesn’t translate to any mass-market type car, nor is the R&D for it really helpful.

    Even a street-legal version wouldn’t sell more than 100s/year, esp. given zero previous brand-cred in the automotive sports world, electric or otherwise.

    Whatever they produce, if anything, is going to be really late to market. Sure, Apple always does well entering markets late, but they have brand recognition and an existing customer base noone else does.

    Having really deep investor pockets like FF does is great, but not enough.

    I hope I’m wrong, and they’ll turn out to be a real car company, but there’s very little sign of it so far.
    I’m much more impressed with Rimac, that small as they are, are managing to make a really nice sportscar they’re actually showing, on a much smaller budget.

      1. wavelet says:

        Enlighten me. What’s that supposed to be a photo of?

        1. Kdawg says:

          https://electrek.co/2016/09/23/faraday-future-fleet-prototype-spotted-testing-in-the-wild/

          I think the difference between Rimac and FF, is that one wants to make a small supply of supercars and the other wants to mass produce cars.

          There’s room for both, just saying they have different goals.

  9. Pushmi-Pullyu says:

    Well, I would regard FF claiming it has a deal with LG Chem for batteries to be a solid indication it’s not a scam… if I hadn’t learned a few things about how “high-tech” scammers operate, from all the time I spent on TheEEStory forum.

    For example, I know that some fraudsters claim to have a business deal with a legitimate company in an attempt to create “honor by association”. (It’s the reverse of the guilt-by-association fallacy, and it’s every bit as fallacious.)

    For example, the serial scammer Andrea Rossi tried to generate “honor by association” for his “E-Cat” perpetual motion scam by claiming a contract with the manufacturer of scientific measuring instruments. The manufacturer responded with a politely worded press release noting that Rossi had bought a few of their instruments, but that this in no way indicated that the manufacturer was involved with building or testing Rossi’s E-Cat, nor was the manufacturer providing any support for Rossi’s claims.

    Now, once again: I have seen no direct evidence that Faraway Faraday Future is a scam. So far, it’s just vaporware, and vaporware isn’t a scam unless someone buys it. But the actions of those running FF do appear to closely resemble the actions of scammers who run a high-tech R&D scam. EEStor was one such scam, albeit a rather minor one; Randell Mills, with his BlackLight Power company, is a long-term and very successful one, with over $60 million bilked from “investors” over the space of something like 25 years.

  10. speculawyer says:

    That’s kinda weird. If you are not building a battery factory then what are you doing?

    Build a brand new auto factory out in the desert? Why? There are empty automobile factories available that you can pick up for cheap.

    1. JyKiaNiroPHEV says:

      Tourism + auto manufacturing = profit.