LG wins battery deal with Yamaha Motors
LG Chem, the world’s leading supplier of car batteries, has signed a battery supplement deal with Yamaha Motors of Japan as the Korean company boosts efforts to diversify.
LG will supply round, pouch-style lithium-ion battery packs for Yamaha’s golf carts throughout 2016.
“LG Chem is the first among its chief local rivals, such as SK Innovation and Samsung SDI, to clinch the battery deal with the Japanese company,” said C.S. Song, head of LG’s public relations team.
The 5.5 kilowatt per hour (KWh) battery is 50 percent lighter than a traditional lead storage battery, but offers double the life span, stated LG.
“Without additional costs, the LG Chem battery will last for five years and charging time has been cut by 40 percent compared to existing models.”
Song declined to give financial details such as the value of the latest agreement. But the LG statement said Yamaha was considering expanding the use of LG Chem batteries to other products.
Analysts and company officials said this would give a huge boost to LG’s battery business and profits.
Established in 1955, Yamaha is one of the world’s leading golf-cart manufacturers.
The company mainly produces motorcycles, marine products and other motorized products.
Global demand for golf carts is estimated at about 1.5 million units.
LG said it would benefit strongly from global car makers’ moves to replace lead storage batteries with lithium-ion ones.
LG Chem competes mainly with Samsung SDI in the car batteries sector. LG relies on pouch-style batteries, while the Samsung Group’s battery unit prefers rectangular batteries.