April 20, 2024

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[THE INVESTOR] LG Chem, the battery-making unit of LG Group, on June 13 denied a news report that it has recently signed a 7 trillion won (US$6.20 billion) deal to supply batteries for Volkswagen’s new EV platform project, called MEB.

“We have never signed any deal with Volkswagen,” the company said in a disclosure to the local bourse operator Korea Exchange. 

The company added it is carrying out multiple projects with global carmakers but cannot confirm any of them without permission from clients.

Earlier on the day, a local daily reported that LG Chem recently won the VW deal, outpacing China’s CATL.

The report said that the two battery makers competed head-on until the last minute and in order to beat the Chinese rival with cheaper pricing, LG Chem reportedly cut its supply price drastically to about US$140 per kilowatt-hour -- the similar level as its price for General Motors’ Bolt EV.

Under the MEB project, VW aims to produce 30 new mass-market, long-distance electric cars by 2020. Other battery makers such as Samsung SDI and China’s BYD are also eyeing to win the lucrative deal.

By Lee Ji-yoon (jylee@heraldcorp.com)