LG Chem and Changan Automobile Sign Strategic Libra Battery Cooperation Agreement

In order to vigorously develop electric vehicles, Changan Automobile has “discharged” everywhere and has focused its attention on high-performance lithium batteries. Recently, South Korea's LG Chemicals and Changan Automobile have signed a strategic cooperation agreement for the joint development of lithium-ion battery systems for automobiles to jointly develop the world's leading lithium-ion battery system for automobiles.

It is understood that the agreement is currently still in the framework stage, the specific details, the project has yet to be further discussed and determined by both parties, but the joint research and development and production of high-performance lithium-ion batteries, is the consensus of both policy makers. Ren Yong of Changan Automobile disclosed that both parties have already made preliminary intentions to establish a joint venture factory to jointly develop and produce lithium batteries for automobiles and notebook computers. At the same time, Ren Yong also stated that there are various forms of cooperation between Changan Automobile and LG: If LG establishes a wholly-owned factory in Liangjiang New Area, it will simply provide support for Changan’s new energy vehicles; if a joint venture is established, Chang’an will use this to enter Lithium battery industry.

In 2011, it will be a year for the upgrading of domestic electric vehicles. The development of high-performance lithium batteries has become a trend. At present, domestic electric vehicles are mainly equipped with nickel-metal hydride batteries. Compared with nickel-metal hydride batteries, lithium batteries with higher efficiency, longer life, and a 10% increase in power are the future direction of electric vehicles. Relevant experts said that the main bottleneck of electric vehicles is currently batteries, and the long recharging time is the most important contradiction to limit their popularity. If current nickel-metal hydride batteries are upgraded to lithium batteries, domestic electric vehicles and new energy vehicles will achieve breakthroughs in marketization.

It is of great significance for Changan to realize its new energy strategy by joining forces with LG Chemical, a world leader in technology and lithium battery production. According to reports, LG Chemicals is South Korea's largest chemical company, and it is also the world's first company to mass produce lithium battery systems. Currently, Hyundai and U.S. General,

The various types of lithium-ion batteries that Ford is carrying on its new energy vehicles are provided by LG Chem. Chang'an New Energy Company is in a leading position in the R&D and production of domestic hybrid vehicles. At present, sales of Changan New Energy Automobiles also account for more than 50% of the national sales. As of 2010, Changan Automobile has cumulatively developed and launched Ben Ben Love, Ben Ben Mini Electric, and Zhi Xiang Oil.

Electric, Jiexun oil and electricity mixed, Zhixiang fuel cell and other 8 new energy automotive products, the first pure electric car Benben LOVE will also be listed this year, Changan Automobile's demand for high-performance lithium batteries is constantly increasing. Chang'an said that once the Changan Automobile is equipped with a lithium battery power system, the domestic new energy vehicles will be fully upgraded and the ordinary people will also be accelerated.