© Reuters. FILE PHOTO: Mahindra Funster electric concept SUV is on display after it was unveiled at the India Auto Expo 2020 in Greater Noida, India, February 5, 2020. REUTERS/Anushree Fadnavis
SEOUL (Reuters) – South Korean battery maker LG Energy Solution is set to supply batteries to Mahindra & Mahindra’s first electric sports utility vehicle (SUV), a source familiar with the matter said on Monday.
The batteries will power the Indian automaker’s XUV400 SUVs, likely scheduled for delivery between the fourth quarter and January, the source said.
The source, who did not confirm the size of the supply deal, declined to be identified as the plans were not yet public.
Before LG Energy Solution was split off from its parent company LG Chem, Mahindra in 2018 signed a deal with LG Chem to collaborate on the supply and technology of lithium-ion batteries based on nickel, cobalt and manganese chemistry, according to a Mahindra statement.
LG Energy Solution declined to comment. Mahindra did not immediately respond.
Mahindra last week raised $250 million from British International Investment for its new EV unit at a valuation of $9.1 billion.
The automaker has plans to launch five electric SUVs over the next few years starting with the XUV400 in September. These models are expected to contribute up to 30%, or about 200,000 units, of its total annual SUV sales by March 2027.
Its chief executive told Reuters in an interview that Mahindra could consider investing in a battery-cell company to meet future electrification needs.