South Korean battery giant LG Energy Solution (LGES) recently secured a $750 million deal with Japanese automaker Isuzu Motors for cylindrical electric vehicle batteries, KED reported, citing a regulatory filing.
According to the report, LGES will supply its cylindrical electric vehicle batteries to Isuzu Motors until the end of 2026.
The parties omitted to share the specific value of the deal. However, industry sources cited by KED suggest that the battery order costs at least one trillion won or approximately $748 million.
It is worth noting that LGES has already supplied Isuzu Motors with its innovative batteries since June 2023.
The Japanese truck maker plans to equip the LGES cylindrical batteries to build the electric vehicle counterpart of the popular medium-duty truck, Isuzu Elf.
Isuzu to launch the Elf EV
Isuzu aims to offer an all-electric Elf model, which already has its own product page. It displays an ecosystem for the upcoming electric truck.
For context, the diesel-powered Elf trucks have already been available for sale in South Korea since 2017. It sold over 2,000 units in the country since its launch.
The Isuzu Elf offers two gross vehicle weight options, including 5 tonnes and 7.5 tonnes. The 5-ton truck version generates a maximum output of 110 kW. It features a 40 or 60-kWh battery with a 120 or 180 kilometres driving range.
Meanwhile, the 7.5-tonne version offers an output of 150 kW. It features a 100-kWh battery for up to 250 kilometres of driving range.
Japanese OEMs tap South Korean suppliers
Japanese automakers tend to turn to South Korean partners for battery supply, while Panasonic has America’s Tesla as its major electric automaker partner. As per industry officials, LGES is among the most popular battery companies among Japanese OEMs.
Notably, Isuzu Motors’ partnership with LGES does not only benefit their own business goals but also the global EV industry. Electric vehicle models equipped with these high-performance LGES batteries can potentially boost adoption and cut carbon emissions in transportation.