Freudenberg e-Power, LGES in long-term battery cell deal

By Mike Brezonick03 February 2023

Freudenberg e-Power Systems and South Korea’s LG Energy Solution have signed a multi-year contract for the supply of lithium-ion battery cell modules. No financial details were provided. With a total capacity of 19 GWh, the agreement enables Freudenberg to expand its capacities to meet rising demand from the North American commercial vehicle markets.

Freudenberg battery packs Freudenberg e-Power Systems has signed an agreement with LGES for the supply of battery cells modules that Freudenberg will used in its battery packs for commercial vehicles. (Photo: Freudenberg)

“The partnership with LG Energy Solution enhances our leading battery offering for the bus and truck market,” said Dr. Max Kley, CEO of Freudenberg e-Power Systems. “Together we are able to offer our customers an unparalleled range of solutions specifically tailored to the demanding requirements of this market.”

Freudenberg said its battery systems have accounted for more than 40 million miles driven. The long-term contract with LGES underscores the strategic importance and growth potential that Freudenberg sees in its e-mobility solutions. The battery cell modules supplied by LGES are integrated by Freudenberg e-Power Systems in its battery packs, offering customers in the truck and bus sector fully engineered drive solutions incorporating intelligent battery management systems, cooling, telematics and other relevant elements.

The battery cell modules will be assembled at Freudenberg e-Power Systems’ XALT gigafactory in Midland, Mich. With the recent acquisition of XALT by Freudenberg e-Power Systems, the company is investing a further double-digit million sum in the expansion of its battery business and its capacities.

Leveraging its extensive experience in battery manufacturing, LGES has been expanding its battery business into the commercial vehicle sector. Based on the partnership with Freudenberg, the company now intends to drive its commercial vehicle battery business in North America and Europe.

“Our partnership with FEPS will serve as a launch pad to lead in the commercial vehicle battery market which has the potential for exponential growth,” said Dong-Myung Kim, president of Advanced Automotive Battery Division at LG Energy Solution. “Together with Freudenberg, we will endeavor to create unparalleled customer value through differentiated capabilities accumulated across the entire battery-related field, such as battery cells, modules, packs, and BMS.”

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