LG Energy Solution announced on the 1st that it has signed a strategic memorandum of understanding (MOU) with US electric commercial vehicle startup IndiGoTech.
Under the agreement, the two companies will negotiate the priority application of LG Energy Solution's 46-series cylindrical battery cells in new vehicles being developed by IndiGoTech, such as the next-generation electric commercial vehicles Flow Ride and Flow Cargo. They also plan to carry out technical cooperation to achieve optimal vehicle and battery performance, including extended driving range and reduced charging times.
For LG Energy Solution, this is expected to help increase its 46-series supply track record in the North American market and strengthen local competitiveness. LG Energy Solution plans to begin operations at its cylindrical battery plant in Queen Creek, Arizona, within the year. Based on strengthening its local production base, it aims to accelerate the expansion of new global orders for 46-series cylindrical batteries. As of the second quarter, cylindrical battery shipments have increased by 1.5 times compared to the same period last year.
Expanding its position and business scope in the North American electric commercial vehicle market is also a goal. The electric commercial vehicle market continues to grow, driven by factors such as △increased logistics and delivery demand due to the expansion of online distribution, △advances in battery technology, △expansion of charging infrastructure, and △the trend toward electrification. According to market research firm Global Market Insights, the global electric van market is projected to grow from approximately 16.3 billion dollars in 2024 at a compound annual growth rate of 15.5% to reach approximately 65.6 billion dollars by 2034.
IndiGoTech has secured battery technology and a stable supply base necessary for next-generation electric commercial vehicles through its alliance with LG Energy Solution. Founded in 2010, IndiGoTech is developing electric commercial vehicles for logistics, delivery, and ride-hailing services based on 'SmartWheels' technology, which integrates drive and suspension systems into vehicle wheels to improve ride comfort and provide wider interior space. It is also pursuing a TaaS (Transportation as a Service) business model that combines charging infrastructure and digital mobility services with vehicles.
Will Graylin, CEO of IndiGoTech, stated, "Electrification and automation of ride and delivery services are necessary, but currently, there are not enough electric vehicles and charging infrastructure to meet these needs." He added, "Through a long-term partnership with LG Energy Solution, advanced vehicle battery technology will provide better economics for vehicles, drivers, and fleet operators alike."
Oh Seong-hwan, Marketing Group Leader of LG Energy Solution's small battery business division, explained, "It is significant that we have secured new US customers based on the competitiveness of our NCM (nickel-cobalt-manganese)-based 46-series batteries, which feature high energy density and fast charging performance." He added, "We will expand our business scope into various electric commercial vehicle markets and further accelerate the growth of the 46th-series business."
in INDUSTRY
