LG Energy Solution’s high-capacity batteries were supplied to Proterra for its electric bus “ZX5”. The battery has twice more energy compared to LFP batteries of CATL and BYD based in China. With the recent supply, LG Energy Solution and Proterra have solidified their strategic relationship.
According to the industry on Tuesday, LG Energy Solution recently supplied its batteries to an American electric bus manufacturer called Proterra for its electric transit bus ZX5.
Proterra has been manufacturing ZX5s at its plant in Los Angeles and it has been equipping the buses with LG Energy Solution’s cylindrical batteries.
LG Energy Solution has been working with Proterra since 2016 in order to develop batteries that are optimized for large vehicles. Starting with Proterra’s electric bus “Catalyst E2” in 2017, LG Energy Solution has been supplying its cylindrical batteries to Proterra.
It is reported that batteries that LG Energy Solution recently supplied to Proterra are 21700 cylindrical batteries. The 21700 battery has a 21mm x 70mm dimension. It has higher energy density than that of the 18650 battery (18mm x 65mm) as it has longer diameter.
In order to satisfy demands from Proterra, LG Energy Solution’s battery supplies 675 kWh of energy that is the biggest amount of energy created by batteries that are on the market for electric buses. Considering the fact that LFP batteries of CATL and BYD, which are the top two electric vehicle battery manufacturers in China, create 300 kWh of energy, LG Energy Solution’s 21700 battery creates twice more energy.
Proterra explained that LG Energy Solution’s battery satisfies energy capacity, high power, and charge efficiency at the same time.
It is expected that the recent contract with Proterra will have a positive impact on LG Energy Solution’s profitability. Because more batteries are used as they are able to create more energy, LG Energy Solution is expecting to see its profitability improve.
LG Energy Solution is working on expanding backlogs of its cylindrical batteries along with pouch-type batteries. It is currently working on development of 4680 cylindrical battery as a follow-up model to its 21700 battery in order to meet demands from Tesla.
“Proterra is an important partner for LG Energy Solution for it to expand its cylindrical battery business.” said one official from the industry. “LG Energy Solution will also look to focus on development of electric vehicle batteries in order to target the global electric vehicle battery market.”
Meanwhile, LG Energy Solution stated that it cannot disclose any detailed information related to a contract with its customer when it was asked about supplies of 21700 batteries to Proterra for ZX5.
Staff Reporter Kim, Jiwoong | jw0316@etnews.com