LG Energy Solution targets U.S. commercial vehicles with 46-series batteries; pursues supply deal with Indigo Tech

[Financial News] LG Energy Solution is targeting the North American electric commercial vehicle market with its next-generation 46-series cylindrical batteries. The company is pursuing a plan to supply batteries for next-generation vehicles developed by U.S. electric commercial vehicle startup Indigo Tech beginning in 2027. Its strategy is to expand its customer base beyond passenger electric vehicles to commercial vehicles and accelerate growth in its 46-series battery business.
LG Energy Solution said on the 1st that it had signed a strategic memorandum of understanding (MOU) with U.S. electric commercial vehicle startup Indigo Tech to supply 46-series cylindrical batteries and pursue technical cooperation. The 46-series cylindrical battery is a next-generation cylindrical battery format based on a diameter of 46 millimeters, offering greater capacity and output as well as faster-charging performance than conventional cylindrical batteries.
Oh Sung-hwan, head of the Marketing Group at LG Energy Solution's Small Battery Division, said, "This is significant because we secured a new U.S. customer based on the competitiveness of NCM-based 46-series batteries, which offer high energy density and fast-charging performance. Through this partnership, we will expand our business into various electric commercial vehicle markets and further accelerate growth in our 46-series battery business."
The two companies will discuss initially applying LG Energy Solution's 46-series cylindrical battery cells to Indigo Tech's next-generation electric commercial vehicles, including the Flow Ride and Flow Cargo, which are under development. Discussions on supply will cover the period from 2027 to 2030.
In addition to supplying batteries, the companies will pursue technical cooperation to improve vehicle performance, including extending driving range and reducing charging times. Through the partnership, LG Energy Solution plans to expand its track record of 46-series battery supplies in North America and broaden its customer base to include commercial electric vehicles.
Founded in 2010, Indigo Tech is developing electric commercial vehicles for logistics and delivery, ride-hailing services, and other applications based on its SmartWheels technology, which combines a drive system and suspension system within the wheels. The company is also pursuing a Transport as a Service (TaaS) business that integrates charging infrastructure and digital mobility services with its vehicles.
The electric commercial vehicle market is expanding rapidly, driven by growing delivery demand resulting from the expansion of online retail and the development of charging infrastructure. Global Market Insights forecasts that the global electric van market will grow at an average annual rate of 15.5%, from approximately $16.3 billion in 2024 to approximately $65.6 billion in 2034.
Will Greilin, CEO of Indigo Tech, said, "Although passenger transport and delivery services need to be electrified and automated, there are currently not enough electric vehicles and charging infrastructure to meet that need. Through a long-term partnership with LG Energy Solution, we will provide better economics for vehicles, drivers, and fleet operators alike."
LG Energy Solution is also strengthening its local production base in North America. The company plans to begin operating its cylindrical battery plant in Queen Creek, Arizona, within the year and will use the facility as a foundation to expand new orders for 46-series batteries.
Mass production of 46-series batteries is also gathering pace. According to LG Energy Solution, cylindrical battery shipments in the second quarter increased 1.5 times from a year earlier, driven by expanded production and shipments of 46-series batteries.
[email protected] Kim Dong-ho Reporter