Freudenberg to Build Battery Cell Modules in Midland via Partnership

Freudenberg e-Power Systems in Munich, Germany, and LG Energy Solution, which has a manufacturing facility in Holland, have signed a multi-year contract for the supply of lithium-ion battery cell modules.
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Freudenberg's XALT Energy facility in Midland. // Courtesy of XALT Energy
Freudenberg’s XALT Energy facility in Midland. // Courtesy of XALT Energy

Freudenberg e-Power Systems in Munich, Germany, and LG Energy Solution, which has a manufacturing facility in Holland, have signed a multi-year contract for the supply of lithium-ion battery cell modules.

With a total capacity of 19 GWh, Freudenberg is expanding its capacities to meet rising demand and ensure the best possible supply for its customers in commercial vehicle applications, such as trucks and buses in North America and Europe.

“The partnership with LG Energy Solution enhances our leading battery offering for the bus and truck market,” says Max Kley, CEO of Freudenberg e-Power Systems. “Together we are able to offer our customers an unparalleled range of solutions specifically tailored to the demanding requirements of this market.”

Freudenberg’s e-Power Systems business group is a market leader for emission-neutral energy systems in this sector, which places particularly high demands on the robustness and durability of batteries. To be able to support its customers with the best quality and cost-efficient solutions, Freudenberg partnered with LGES.

“Especially in view of the strong increase in demand worldwide, this is a major plus in the market. We can thus offer both our existing and new customers the highest quality and secured supply,” says Jeff Michalski, managing director of the battery business at Freudenberg.

The partnership covers the supply of lithium-ion battery cell modules, whose properties make them particularly suitable for use in commercial vehicles. For a commercial vehicle, for example, the battery must withstand a much higher energy throughput, which can be up to 11 times that of a passenger car.

The battery cell modules supplied by LGES are integrated by Freudenberg e-Power Systems in their battery packs, offering their customers in the truck and bus sector fully engineered drive solutions including intelligent battery management systems, cooling, telematics, and all other relevant elements.

The battery cell modules will be assembled at Freudenberg e-Power Systems’ XALT gigafactory in Midland. With the recent acquisition of XALT by Freudenberg e-Power Systems, the company is investing a further double-digit million sum in the expansion of its battery business and its capacities.

Leveraging its extensive experience in battery manufacturing, LGES has been expanding its battery business into the commercial vehicle sector. Based on the partnership with Freudenberg, the company now intends to drive its commercial vehicle battery business in North America and Europe.

“Our partnership with FEPS will serve as a launch pad to lead in the commercial vehicle battery market, which has the potential for exponential growth,” says Dong-Myung Kim, president of the advanced automotive battery division at LGES. “Together with Freudenberg, we will endeavor to create unparalleled customer value through differentiated capabilities accumulated across the entire battery-related field, such as battery cells, modules, packs, and BMS.”