LG Energy Solution has signed a memorandum of understanding (MOU) with Kim Long Motors to supply cylindrical battery cells for electric buses, reinforcing its strategy to expand in emerging Asian markets. The agreement, announced on August 28 in Vietnam, covers approximately 1 gigawatt-hour of battery cells and follows the companies’ joint commitment to advance electric mobility in the region.
Under the MOU, LG Energy Solution will provide its 46-series cylindrical cells, which feature a 46 mm diameter and lengths ranging from 80 mm to 120 mm. These cells deliver up to five times the output and more than six times the capacity of conventional 2170 batteries, making them well-suited for long-distance bus operations where performance and reliability are critical.
Kim Long Motors, an automotive subsidiary of Vietnam’s Phu Tai Group, has been scaling up production at its recently completed 3.5 trillion-won manufacturing facility in Hue Province. The plant focuses primarily on electric buses, which are valued for their lower operating costs. In addition, the company is building a new passenger car factory with an annual capacity of 50,000 units, slated to start production in the first quarter of next year.
Le Quang Dat, vice chairman of Kim Long Motors’ board of directors, said the partnership with LG Energy Solution will secure a stable supply chain and stringent quality control. He added that the collaboration would boost the competitiveness of Vietnamese electric vehicles and help position Vietnam as a regional hub for the clean energy industry.
This MOU complements LG Energy Solution’s recent global agreements. In July, the company finalized a 6 trillion-won contract to supply energy storage system batteries to a major electric vehicle manufacturer. Earlier this year, LG Energy Solution also inked battery supply deals with a leading Chinese automaker, a state-owned Polish power company, and an energy management firm in Taiwan.
Source: Businesskorea
