Romeo Power, Inc. (RMO) Signs Supply Agreement with LG To Supply Lithium-Ion Batteries Through 2028

August 13, 2021 5:30 AM EDT
Get Alerts RMO Hot Sheet
Price: $4.73 -0.84%

Overall Analyst Rating:
    NEUTRAL (Up Up)

Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Romeo Power, Inc. (“Romeo Power”) (NYSE: RMO), an energy technology leader delivering advanced electrification solutions for complex commercial vehicle applications, has entered into a long-term supply agreement for lithium-ion battery cells with LG Energy Solution, Ltd. ("LG Energy"), a Tier 1 battery cell and materials manufacturer.

Under the long-term supply agreement, LG Energy has committed to supplying cells to Romeo Power that equal 8GWh of energy through 2028. Romeo Power expects to use the allocated cells to manufacture battery packs for approximately 29,000 electric vehicles sold or operated by its customers.

Romeo Power will facilitate LG Energy’s build of an additional assembly line in Ochang, Korea through a recoupable pre-payment of $64.7 million. The agreement was approved by both Boards of Directors and became effective on August 10, 2021.

“With the rapidly increasing demand for battery cells within the e-mobility space, this partnership with LG Energy is a major milestone that puts Romeo Power in a strong position to support our current and future customers,” said Robert Mancini, Chairman of Romeo Power's Board of Directors. “The high energy density, quality and impressive power output of LG Energy’s cells make them the perfect match for Romeo Power's range of high-performance battery-electric solutions for complex commercial applications.”

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News