Commercial EV innovator Proterra (NASDAQ: PTRA) has formed a new agreement with LG Energy Solution to provide a long-term supply of cylindrical battery cells, to be manufactured at a new LG Energy Solution plant in the US.
LG will deliver cells to Proterra’s factories for the manufacture of the company’s commercial EV battery systems. Proterra hasn’t released any specific numbers, saying only that it will commit “a low nine-figure dollar sum” to secure “multiple gigawatt-hours of dedicated US-manufactured battery cell capacity on an annual basis.”
Proterra and LG have also extended their existing battery cell supply agreement through 2024. Proterra says it will have a stable supply of LG battery cells through 2028.
Since 2016, Proterra and LG engineering teams have been collaborating to maximize cell performance to meet the stringent requirements of commercial vehicles. The cylindrical cells will feature a new, high-nickel NCMA chemistry specifically designed for commercial vehicle and industrial applications.
“Proterra is proud to build on our strong relationship with LG Energy Solution to bring battery cell manufacturing to the United States,” said Gareth Joyce, President of Proterra Powered & Energy. “The technologies we need to combat the climate crisis and meet the global demand for zero-emission, battery-electric commercial vehicles can and must be built in the US.”