Expectations are rising that the relationship between Korea and China will improve, accelerating cooperation between corporations in the two countries. Amid growing uncertainty in the North American market due to U.S. President Donald Trump's tariff policy, more domestic corporations are partnering with China, particularly in the electric vehicle and battery sectors.
Recently, LG Energy Solution has entered into a supply contract for 46 series (46mm in diameter) cylindrical batteries with China's Chery Automobile. LG Energy Solution plans to supply a total of 8 gigawatt-hours (GWh) of batteries to Chery Automobile's subsidiary over the next six years, enough to equip about 120,000 electric vehicles.
Chery Automobile, established in 1997, is a state-owned enterprise in China, recognized as one of the top five automotive companies in the country. This is the first time that a domestic battery company has secured a large-scale supply contract for cylindrical batteries to be installed in Chinese electric vehicles. The two companies are in discussions to expand their cooperation to other electric vehicle models within Chery.
As expectations arise that Korea and China can restore relations following the inauguration of Lee Jae-myung, forecasts suggest that cooperation between corporations in both countries, which had stagnated for a time, will regain momentum. Chinese state media have argued that in response to tariffs on imported vehicles imposed by the United States, corporations from both countries must strategically join hands.
The battery materials industry is strengthening cooperation with Chinese battery companies in the European market while diversifying its customer base. Earlier this month, Solus Advanced Materials signed a supply contract for battery foil (a thin copper film used in batteries) with China's CATL, the world's largest battery manufacturer. Ecopro and ECOPRO BM are pursuing contracts to supply cathode materials and electrolytes, respectively, to CATL and other Chinese battery companies.
The call from the automotive industry for Chinese electric vehicles and batteries continues. Kia equipped its first purpose-built vehicle (PBV) PV5, launched on the 10th, with a prismatic NCM (nickel-cobalt-manganese) battery made by CATL. Until now, Hyundai Motor Group has only applied CATL batteries to small vehicle models such as Niro, Ray, and Kona.
Hyundai Motor is in discussions for a supply contract with the third-largest battery company in China, CALB. Reports suggest that the two companies reached a 30 GWh contract last month, but Hyundai Motor clarified that details have not been finalized. It is known that Beijing Hyundai, Hyundai Motor's joint venture in China, has opted for BYD batteries for its locally dedicated model, the Elecxio, set to launch in the second half of this year.
KG Mobility has been collaboratively developing new cars with Chery Automobile since last year, aiming to release a successor to the Rexton, a mid-size sports utility vehicle (SUV), by 2026. They are also cooperating with BYD in the electric vehicle and battery sectors.
Renault Korea's Grand Koleos, launched last year, is the first outcome of the new car project 'Aurora' that has been pursued in collaboration with Geely Automobile. Starting in the second half of this year, the company plans to entrust the production of the pure electric vehicle Polestar 4 to its Busan plant. Polestar is the electric vehicle brand of Volvo Cars, with Geely Automobile as its major shareholder.