South Korean Firm to Supply Eaton With Battery Packs

South Korean chemicals producer LG Chem Ltd. agreed to supply lithium-ion battery packs to Eaton Corp., the U.S. maker of commercial vehicle parts, Bloomberg reported.

Seoul-based LG Chem, which supplies batteries for General Motors Co.’s Volt plug-in electric car, will provide battery packs to Eaton for use in hybrid commercial vehicles for four years starting November, the company said in a statement. It did not give the value of the contract or the volume of units to be sold.

LG Chem expects that supplying Eaton, which accounts for more than 90% of sales of commercial hybrids in the United States, will enable it to expand in that market, the statement said.

Eaton will provide parts equipped with LG’s battery packs for use in hybrid commercial vehicles to companies including Navistar International Corp. and Iveco SpA, the South Korean chemicals maker said.