Proterra, LG Energy Solution to partner on long-term supply agreement for EV battery cells
Proterra Inc, has concluded negotiations with LG Energy Solution on a new agreement that will provide Proterra with a long-term supply of cylindrical cells produced at an LG Energy Solution battery cell manufacturing plant in the United States.
The U.S.-manufactured battery cells will be delivered to Proterra factories for the manufacture of the company’s industry-leading commercial electric vehicle battery systems. Proterra will commit upfront a low nine-figure sum under the agreement to secure multiple gigawatt hours of dedicated U.S.-manufactured battery cell capacity on an annual basis.
“As an American technology leader, Proterra is proud to build on our strong relationship with LG Energy Solution to bring battery cell manufacturing to the United States,” said Gareth Joyce, president of Proterra Powered and Energy. “The technologies we need to combat the climate crisis and meet the global demand for zero-emission, battery-electric commercial vehicles can and must be built in the U.S. Today’s announcement is a significant step forward in this pursuit and Proterra’s mission of advancing EV technology to deliver the world’s best performing commercial vehicles.”
In addition to the U.S.-manufactured battery cells that will be supplied to Proterra under the new agreement, Proterra and LG Energy Solution have extended their existing battery cell supply agreement through 2024. Together, this secures Proterra a stable supply of LG Energy Solution battery cells through 2028.
“The collaboration between LG Energy Solution and Proterra will act as a critical milestone in seizing America’s eco-friendly commercial vehicle industry, already taking a lead in the global market,” said Wonjoon Suh, senior vice president and the division leader of Mobility and IT Battery Division. “LGES will continue to expand our EV battery manufacturing capability in the U.S. and bolster local supply chain to foster clean energy industry in the U.S.”
Both Proterra and LG Energy Solution plan on getting approval by their board of directors for the agreement and the investment by Q4 of 2021, respectively.
