Vice Chairman Park Jin-soo of LG Chem

Troy-based LG Chem Power Inc. announced on Feb. 23 it will supply the lithium-ion battery pack system and controls for the 2017 Chrysler Pacifica Hybrid minivan, the industry’s first electrified minivan. The vehicle is scheduled to launch by the end of the year.

LG Chem will provide 16-kilowatt-hour battery packs to Chrysler for the plug-in hybrid electric vehicle (PHEV) version of its minivan Pacifica that is slated to be mass-produced later this year. It also plans to produce and supply batteries at its facility in Holland, Michigan, in the U.S.

LG Chem said the deal is for an entire pack that includes battery cells and various components such as a battery management system (BMS), proving its technological capabilities in all areas of batteries.

The contract is expected to allow LG Chem to raise hundreds of billions of won in sales. A technology partnership agreement between the two companies also ensures additional orders in the future.

LG Chem has been selected as the supplier of electric vehicle batteries for three major North American carmakers — General Motors, Ford and Chrysler. The company said it has already secured battery supply orders for hundreds of thousands of units from the three automakers.

For the North American market, LG Chem churns out battery packs at its manufacturing facility in Holland. LG Chem added a line late last year and is running four lines at full capacity to meet increasing orders. It newly hired 100 workers late last year to bring total employees at the plant to 330.

LG Chem was selected as the supplier of electric vehicle batteries for General Motors’ hybrid Volt in 2009 and Ford Motor’s electric sedan Focus in 2010. It also was the power supplier for General Motors’ high-performance electric vehicle Bolt last year.

LG Chem has been engaged in research and development in the U.S since establishing LG Chem Power Inc. (LGCPI) in 2000. 

Since opening in 2012, the Holland factory has been in charge from designing to mass-production of battery packs.

Lee Woong-beom, head of LG Chem’s battery business, said that the recent contract with Fiat Chrysler Automobiles has allowed the company to secure all three major North American automakers as clients, paving the way for it to take the lead in the global electric vehicle battery market. LG Chem plans to seek more contracts worldwide to maintain lead in the field, Lee said.

Globally, LG Chem has three production facilities in Ochang, North Chungcheong Province in South Korea, Holland, Michigan in the United States, and Nanjing, Jiangsu Province in China. The construction of the Chinese plant was completed in October last year, increasing LG Chem’s overall production capacity. So far, the company has secured orders to supply electric vehicle batteries from about 20 global automakers.

Denise Gray, CEO of LG Chem Power, confirmed that the cells and packs will be manufactured at LG Chem Michigan’s facility in Holland. She says the battery pack was engineered at its facility in Troy, including hardware, software, prototypes, packs, and electronics.

“(LG Chem has) experience with entire battery packs, including cell design and manufacturing capability,” Gray says. “We believe our technical strengths, engineering, and manufacturing expertise position us as a provider for electric vehicles today and in the future.”

A view of LG Chem’s plant in Ochang, Cheongju City, North Chungcheong Province.(Photo:LG Chem)