[Edaily Reporter SOYEON KIM ] LG Energy Solution is targeting the North American commercial electric vehicle market by securing additional customers for its 46 Series cylindrical batteries. The company plans to strengthen its market competitiveness by establishing a track record with the 46 Series.

LG Energy Solution announced on the 1st that it had signed a strategic memorandum of understanding (MOU) with indiGOTech, a U.S. electric commercial vehicle startup.

Through this agreement, the two companies agreed to discuss the priority adoption of LG Energy Solution’s 46 Series cylindrical battery cells in indiGOTech’s next-generation electric commercial vehicles, such as the “Flow Ride” and “Flow Cargo,” currently under development.

In addition to negotiating a supply contract for the 46 Series batteries, the companies agreed to collaborate on technology to optimize vehicle and battery performance, including extending driving range and reducing charging times.

Through this collaboration, Indigo Tech will be able to secure the battery technology and a stable supply base necessary for next-generation electric commercial vehicles. LG Energy Solution is also expected to strengthen its market competitiveness by expanding its track record of supplying 46 Series batteries in the North American market.

In particular, this partnership is significant as it marks LG Energy Solution’s expansion of the 46 Series’ application from passenger electric vehicles to commercial electric vehicles, thereby diversifying its customer and product portfolios. By securing new customer references ahead of local production in North America, the company has also laid the groundwork for expanding future orders for the 46 Series.

Founded in 2010, Indigo Tech is developing electric commercial vehicles based on its “SmartWheels” technology, which integrates drive and suspension systems into vehicle wheels. This technology is characterized by its ability to enhance ride comfort while increasing interior space. The company is currently developing vehicles for use in logistics, delivery, and ride-hailing services.

In addition, the company is pursuing a TaaS (Transportation as a Service) business model that integrates charging infrastructure and digital mobility services with vehicles. Indigo Tech is recognized for its advanced technological capabilities and strong business potential.

LG Energy Solution plans to use this collaboration as a starting point to expand its presence and business scope in the North American electric commercial vehicle market. In particular, the electric commercial vehicle market continues to grow, driven by the trend toward electrification. According to market research firm Global Market Insights, the global electric van market is projected to grow at an average annual rate of 15.5%, expanding from approximately $16.3 billion in 2024 to about $65.6 billion by 2034.

This agreement also signals a positive outlook for the growth of LG Energy Solution’s global 46 Series cylindrical battery business. LG Energy Solution is strengthening its local production base, including plans to begin operations at its cylindrical battery plant in Queen Creek, Arizona, later this year. The company also plans to accelerate the expansion of new global orders for its 46 Series cylindrical batteries.

Will Graelin, CEO of IndigoTech, stated, “While the electrification and automation of ride-hailing and delivery services are necessary, the electric vehicles and charging infrastructure to support them are still insufficient.” He added, “Through our long-term partnership with LG Energy Solution, we will apply cutting-edge battery technology and provide better cost-effectiveness for vehicles, drivers, and fleet operators alike.”

Oh Seong-hwan, Head of the Marketing Group at LG Energy Solution’s Small Battery Business Division, remarked, “It is significant that we have secured new customers in the U.S. based on the competitiveness of the nickel-cobalt-manganese (NCM)-based 46 Series, which features high energy density and fast charging performance.” He added, “Building on this collaboration, we will expand our business scope into various electric commercial vehicle markets and accelerate the growth of our 46 Series business.”

Meanwhile, LG Energy Solution explained that, driven by the stable mass production and expanded shipments of the 46 Series, its cylindrical battery shipments as of the second quarter of this year increased 1.5 times compared to the same period last year.