Northvolt signs deal with battery equipment maker Lead China

Swedish battery maker Northvolt is using battery-making equipment from Lead China, according to industry sources on Feb. 20. The exact size of the deal was not revealed.

Considering that another manufacturer – CIS – involved in much less in terms of production had bagged a KRW 40 billion deal with Northvolt in 2019, industry watchers believe the deal Lead China likely will reach around KRW 100 billion.

Tension arose among Korean battery makers over the Northvolt deal, with many concerned that they may lose business to their Chinese rivals. Lead China is capable of producing equipment for all phases of the battery-making process, from mixing the materials to logistics. The firm also supplied equipment for CATL, the world’s largest battery maker.

In 2019, Northvolt formed a joint venture with Volkswagen, which uses batteries from China’s CATL, and also from LG Chem, Samsung SDI and SK Innovation. Recently, more and more European carmakers have been looking to wean itself off of offshore battery makers for self-reliance.

The Elec is South Korea’s No.1 tech news platform.