LG Energy Solution and Impact Clean Power Technology Sign Multi-year Battery Supply Agreement to Power Electric Buses in Europe

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Dec 07, 2023, 06:00 ET

LG Energy Solution to supply ICPT with around 200,000 units of battery modules for electric bus application for 3 years
Battery modules manufactured at the LG Energy Solution Wroclaw facility to be assembled into battery packs and systems at GigafactoryX ICPT in Pruszkow
The deal to put Poland at the center of a comprehensive European supply chain for electric public transportation, with Solaris Bus & Coach - a leading electric bus producer in Europe - being one of the first European customers to receive batteries
LG Energy Solution to apply NCM chemistry which enables higher density to its batteries, realizing longer driving range and enhanced durability

SEOUL, South Korea, Dec. 7, 2023 /PRNewswire/ -- LG Energy Solution (KRX: 373220), a leading global manufacturer of advanced lithium-ion batteries, and Impact Clean Power Technology(ICPT), a top global supplier of heavy-duty battery systems for public transportation, announced that they have signed a supply agreement for NCM lithium-ion battery modules.

LG Energy Solution and ICPT announced that they have signed multi-year battery supply agreement.

Over the next three years, LG Energy Solution will deliver around 200,000 units of battery modules manufactured at its Wroclaw plant in Poland to ICPT's GigafactoryX in Pruszkow, where they will be assembled into battery packs and systems. The supplied batteries will be capable of supporting the manufacture of nearly 3,000 large commercial electric vehicles.

With the entire process from battery manufacturing to electric bus production taking place in Poland, this deal aims to establish a comprehensive supply chain for Europe's electric public transportation system. The partnership also signifies the concerted efforts of both companies to drive forward the electrification of Europe.

The agreement also marks a major milestone for both companies in solidifying technological leadership in the highly demanding commercial vehicle sector. Batteries for commercial vehicles like electric buses must withstand a much higher energy flow, up to around 11 times higher than passenger cars, which is why LG Energy Solution will apply NCM chemistry to its batteries to enhance their durability and driving range.

"Our partnership with ICPT, a highly trusted battery systems provider for public transportation, presents us an exciting opportunity to introduce our outstanding battery technology to the fast-growing European commercial vehicle market," said Seungtaek Hong, head of Advanced Automotive Battery OTS Marketing Department at LG Energy Solution. "Capitalizing on our Wroclaw plant, which is the biggest battery manufacturing facility in Europe, we are committed to establishing a robust supply chain in Europe and expediting its transition to sustainable mobility."

LG Energy Solution Wroclaw is Europe's largest producer of lithium-ion batteries for the automotive industry. Located in Biskupice Podgorne (Kobierzyce commune), the plant's current capacity is 70GWh and covers an area of about 100 hectares. All battery components are manufactured up to the point where they are ready for installation in a car. LG Energy Solution Wroclaw makes Poland the European leader in the industry.

"Our partnership with LG Energy Solution will strengthen our leading battery offering in the bus market. Together, we can provide our customers with exceptional, advanced solutions tailored to the demanding conditions of this market," said Bartek Kras, Vice President of ICPT. "Considering the strong global demand, this is a significant added value for this sector. This way, we can offer both our current and new customers the highest quality and guaranteed supply assurance."

About LG Energy Solution:

LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 25,000 patents. Its robust global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V., Hyundai Motor Group, and Honda Motor Co. Ltd. At the forefront of green business and sustainability, LG Energy Solution aims to achieve carbon neutral operations by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution's ideas and innovations, visit https://www.lgensol.com.

About Impact Clean Power Technology:

Impact Clean Power Technology is a leading manufacturer of battery systems for the transportation, industry and stationary energy storage for RES, traditional power generation, rail and telecommunications. In addition to the Polish domestic market, we sell our products throughout Europe, Ausralia, New Zeland and the United States. Our laboratory develops innovative battery systems that have the parameters to provide a market advantage in every segment of our business. We are already working on the next generation of our solutions. We are ready to support global efforts towards a zero-emission economy and the hydrogen revolution that is coming as a result. In these activities, we support our Customers: Solaris Bus & Coach, Autosan, Siemens, Stadler, Skoda, Voith, JBT, Kiepe Electric, TEMSA, Dancer Bus, Phoenix Motorcars, Innogy, PGE EO. We have supplied them with 20 thousand reliable systems. Vehicles with our batteries have traveled more than 150 million km worldwide. Our energy storage solutions support groundbreaking RES projects implemented in our country.

For more information and news on Impact, please visit www.impactnewenergy.com

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