Report: Faraday Future inks $2.4B battery contract with LG Chem

Report: Faraday Future inks $2.4B battery contract with LG Chem

Faraday Future has reportedly established a significant supply deal for electric vehicle batteries.

The deal is said to be worth 2.7 trillion won (~$2.42 billion USD), according to a Korea Herald report spotted by Electrek. If the price is around $145 per kWh — matching GM’s confirmed cost for the Chevrolet Bolt battery — the contract is intended to fulfill supply requirements for a few hundred thousand vehicles.

The startup has been shrouded in mystery since announcing its EV production plans more than a year ago. Plenty of industry veterans were listed among its ranks, along with former Tesla employees. Its leadership was initially obscured, however, until reports uncovered links to China’s LeEco and its billionaire founder Jia Yueting.

Confusingly, the Herald report says the battery deal was established by Faraday Future but the batteries will be destined for the LeSee, a four-door sedan to be built by parent LeEco. The scale of the deal suggests some if not all the batteries will be used for the LeSee, which is expected to be built in China with much larger production volume targets.

Faraday Future earlier this year broke ground for a $1 billion factory in Nevada, while its headquarters is located in California. Its first production-bound car has already appeared in teasers and spy photos (pictured), pointing to a crossover-like form that evokes evokes the Honda Crosstour.

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