Battery producer says Tesla competition is not menacing image

LG Chem, the South Korean auto battery maker that seems poised to dominate the global market for the packs that represent the lifeline of plug-in hybrid and electric cars, says it would take hold of 25% of the segment’s US sales by 2017.

Although many analysts, executives and observers forecasted electric cars as the next big thing for the automotive world, many limitations – including price, recharging network and range – have postponed the segment’s rise to prominence. Now, the battery pack producer expects global electric-vehicle battery sales to finally rise, as the technology is maturing – with battery prices falling and range rising.

LG Chem was also ready to dominate the incipient US auto battery market – that is before Tesla wrecked havoc on the market with its ambitious plans to build a battery Gigafactory. Tesla has secured a partnership and financing with Japan’s Panasonic, its primary supplier of batteries.

According to Prabhakar Patil, CEO of LG Chem Power – the South Korean’s US division – after many years of disappointments, the EV market is finally rising and the company expects to secure 25% of the market. The executive said that many automakers are in talks right now with LG Chem, allowing him to make such bold predictions. Tesla’s competition is not worrying them, as the executive says that a rival’s success is translated equally to them as well, all of them growing on the undersized EV market.

Via Automotive News