LG Energy to supply batteries to US solar EV startup Aptera for 7 years

LG Energy Solution Ltd., the world’s third-largest battery maker, agreed to supply cylindrical products to Aptera Motors Corp., a US solar electric vehicle startup, in an estimated $440 million deal to diversify its customer bases amid prolonged weakness in the global EV industry.

LG Energy said on Friday it signed a memorandum of understanding with Aptera and CTNS, a South Korean battery module and pack manufacturer, to provide 4.4 gigawatt-hours (GWh) of 2170-type cylindrical batteries from this year to 2031.

The battery, 21 millimeters in diameter and 70 mm in length, is expected to help the US startup ramp up production of its Aptera solar EV, which the company aims to launch in the country in 2025, LG Energy said.

“The supply deal allows us to accelerate the diversification of products and customers,” said an LG Energy official in Seoul.

The contract’s value was estimated at $440 million based on an assumed battery price of $100 per kilowatt-hour, industry sources in Seoul said, though LG Energy, Aptera and CTNS have yet to disclose financial terms.

643 KM ON A SINGLE CHARGE

The Aptera reported more than 50,000 pre-orders as the solar EV can travel up to 643 kilometers (400 miles) on a single charge, far longer than 300-500 km of existing EVs, according to the US startup.

Its integrated solar panels can power the vehicle for up to 64 km a day and over 16,093 km per year, Aptera said.

The company plans to introduce the solar EV in other countries such as the United Arab Emirates.

“This partnership represents a significant milestone in bringing our solar electric vehicles to market with the reliability and performance our customers expect,” said Aptera co-CEO Chris Anthony.

Write to Hyung-Kyu Kim at khk@hankyung.com
 
Jongwoo Cheon edited this article.