South Korean chemical company LG Chem has won an order to supply batteries for hybrid electric vehicles made by German car maker Audi, a subsidiary of Volkswagen Group.
LG Chem said on Wednesday that it would provide batteries for Audi's next-generation plug-in hybrid and micro hybrid electric vehicles. Financial terms of the agreement were not disclosed, but the South Korean firm said that it was worth hundreds of millions of dollars and is expected to lead to further contracts.
"Given that Audi shares many auto platforms with parent Volkswagen, we expect more such deals from the German auto group," LG Chem stated.
LG Chem also produces batteries for electric or plug-in hybrid cars made by other manufacturers, including General Motors, Ford, Renault, Hyundai and Kia. The company aims to achieve sales of over 10 trillion won ($9.8 billion) from its battery business by 2018, Reuters reported.
According to the Wall Street Journal, the company said recently that it is working with car makers to develop a battery pack that will allow cars to go 200 miles on a single charge -- more than double the range of most electric or plug-in hybrid vehicles currently on the road.
LG Chem is the biggest chemical company in South Korea. It has operations in petrochemicals, IT & electronic materials and energy solutions. The company has factories in South Korea and the United States and also plans to build a battery plant in China.