Freudenberg, LGES Collaborate for Battery Supply
LG Energy Solution
Freudenberg e-Power Systems and LG Energy Solution (LGES) have signed a contract to supply lithium-ion battery cell modules with a total capacity of 19 GWh. This is to meet the growing demand and ensure adequate supply for their commercial vehicle customers in North America and Europe.
The signing of the contract is a big step for both companies toward making electric drives for commercial vehicles more environmentally friendly. Freudenberg's e-Power Systems is a leading provider of emission-free energy systems in this sector and has high standards for battery robustness and durability. Freudenberg has teamed up with LGES, one of the world's best lithium-ion battery makers, to give its customers the best quality, most innovative, and cost-effective solutions.
The partnership involves the supply of lithium-ion battery cell modules, which are ideal for use in commercial vehicles. These batteries need to handle a much higher energy throughput compared to passenger cars—up to 11 times more. LGES will supply the battery cell modules, which will then be integrated into battery packs by Freudenberg e-Power Systems.
The end product will be a complete drive solution for the truck and bus sectors, including intelligent battery management systems, cooling, telematics, and other relevant components. The battery cell modules will be assembled at the XALT gigafactory in Michigan, USA, which was recently acquired by Freudenberg e-Power Systems. The company is investing a substantial sum in expanding its battery business and capacities.
“The partnership with LG Energy Solution enhances our leading battery offering for the bus and truck market,” explains Dr. Max Kley, CEO of Freudenberg e-Power Systems. "Together, we can offer our customers an unparalleled range of solutions specifically tailored to the demanding requirements of this market.”
Jeff Michalski, Managing Director Battery Business, adds: “Especially given the strong increase in demand worldwide, this is a major plus in the market. We can thus offer both our existing and new customers the highest quality and secured supply.”
LGES is leveraging its battery manufacturing expertise to expand into the commercial vehicle sector. With the partnership with Freudenberg, the company plans to grow its commercial vehicle battery business in North America and Europe.
“Our partnership with FEPS will serve as a launch pad to lead in the commercial vehicle battery market, which has the potential for exponential growth,” said Dong-Myung Kim, President of Advanced Automotive Battery Division at LG Energy Solution. "Together with Freudenberg, we'll try to create customer value that can't be beaten. We'll do this by combining our different skills in all areas related to batteries, such as battery cells, modules, packs, and BMS."
“The official signing ceremony marks a special day for us as we take another strategically important step to best serve our customers with top-quality battery solutions in the heavy-duty sector. As the preferred partner of LGES in this segment, we are strengthening our collaboration with one of the world’s leading battery manufacturers," summarises Nils Martens, CCO Freudenberg e-Power Systems, at the signing ceremony.
Freudenberg's battery systems have been proven with over 40 million miles driven and are among the leading solutions on the market. The contract with LGES highlights the strategic significance and growth potential of Freudenberg's e-mobility solutions. The company's expertise in both battery and fuel cell technologies makes it a leader in electromobility for the heavy-duty sector.