LG Chem Challenging Tesla With Its Own Long-Range Battery

Elon Musk has been saying repeatedly that his company's priority is the advancement of electric vehicle technology and the promotion of the global EV movement, which is why it has been focused on the development of electric car batteries as the key to making EVs a more viable alternative to conventional cars. So far, Tesla's battery technology has been superior to most other car makers', delivering a range of more than 200 miles, a feat that no other manufacturer has been able to accomplish, but now, it seems that the Palo Alto, California-based company is about to face some serious competition, with South Korean battery manufacturer LG Chem announcing its plans to develop a long-range battery that could rival Tesla's battery pack.

The Korean battery maker's chief financial officer said in a statement recently that they are working on an EV battery that will be able to provide at least a 200-mile range, and is expected to be ready for use by 2016. LG Chem's batteries contain lithium-ion pouch cells, so that they can be thinner and more flexible, and built in different shapes, which makes them very suitable for use in electric cars. The company is already supplying batteries for several car makers, including General Motors, Ford, and Hyundai, among others. General Motors use LG Chem's batteries for the Chevrolet Volt plug-in hybrid, that has an electric range of 35 miles per one charge, and have said that they plan on introducing a 200-mile range EV that will cost about $30,000 in the near future. While GM officials have not confirmed that the batteries for this new electric vehicle will come from LG Chem, it's highly likely that they will continue their collaboration with the South Korean battery maker.

In addition to General Motors, one of the world's largest car makers, LG Chem has managed to sign a supply contract with yet another auto giant - German luxury car maker Audi. The South Korean company will supply hundreds of millions of dollars worth of batteries for Audi's next-generation plug-in hybrid vehicles, but it's unclear when the batteries will be delivered. Audi is part of the Volkswagen Group, one of the world's largest car manufacturers, and LG Chem is confident that the contract with Audi will lead to more orders from its parent company. Chances are that one of the the first Audi models to get an LG Chem battery will be the A3 e-tron SportBack.

With the addition of Volkswagen in its lineup of partners, LG Chem now has supply contracts with two of the world's biggest car manufacturers, making it one of the key players in the electric vehicle market. The company is hoping to sell about $10 billion worth of batteries by 2018, and it seems that it's on the right track to do it. What's more, LG Chem's batteries will undoubtedly give Tesla a run for its money, and possibly encourage other companies to try and develop advanced EV battery technology, which was one of Tesla's main goals in the first place.