LG Chem To Add 2-3 Overseas Car Makers To Customer Base This Year

LG Chem Ltd. (051910.SE), South Korea's largest chemical company by sales, will add two to three overseas car makers to its customer base this year in a move to strengthen its lithium ion battery business, the company's vice chairman said.

"We have already signed a deal with the companies (from Europe and Japan to supply lithium ion batteries for electric vehicles) but we cannot give any related details for now," LG Chem Vice Chairman and Chief Executive Peter Bahnsuk Kim said in a dinner meeting with reporters on Tuesday.

LG Chem is stepping up efforts to strengthen the customer base for its rechargeable batteries used in electric vehicles in a bid to diversity its business.

In mid-July, LG Chem said its U.S. unit Compact Power Inc. will provide rechargeable batteries for Ford Motor Co.'s (F) Focus compact car due out next year. That was the second big win for LG Chem's Compact unit, which was also chosen last year by General Motors Co. (GM.XX) to provide batteries for its Chevrolet Volt plug-in hybrid.

LG Chem said it currently has seven customers to which they are supplying or will supply lithium ion batteries -- Hyundai-Kia automotive group, domestic electric vehicle manufacturer CT&T, General Motors, Ford Motor, Eaton Corp., China's CHANA and Volvo AB.

The company posted a record second-quarter net profit of KRW645.7 billion ($550 million), up 36% on the year, buoyed by strong sales of petrochemicals and rechargeable batteries.

-By Kyong-Ae Choi, Dow Jones Newswires; 822-3700-1903; kyong-ae.choi@dowjones.com

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