LG Energy Solution signs strategic MOU with U.S. startup indiGOTech

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

Under the agreement, the companies will discuss prioritizing LG Energy Solution’s 46-series cylindrical battery cells for new vehicles, including the next-generation electric commercial vehicles Flow Ride and Flow Cargo, currently under development by indiGOTech.

In addition to discussing a 46-series battery supply agreement, the companies plan to collaborate on technology to optimize vehicle and battery performance, including extending driving range and reducing charging time.

The partnership is expected to give indiGOTech access to the battery technology and reliable supply base it needs for next-generation electric commercial vehicles. LG Energy Solution, meanwhile, expects to strengthen its market position by expanding its track record supplying 46-series batteries in North America.

Founded in 2010, indiGOTech is developing electric commercial vehicles for logistics and delivery, ride-hailing, and other uses. Its “SmartWheels” technology integrates the drive and suspension systems into the wheels, improving ride comfort and creating more interior space.

Recognized for its technology and business potential, indiGOTech is also expanding into Transportation as a Service (TaaS), combining vehicles with charging infrastructure and digital mobility services.

The electric commercial vehicle market continues to grow, driven by the shift to electrification, including rising logistics and delivery demand as online retail expands, advances in battery technology, and the expansion of charging infrastructure. 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%, from about $16.3 billion in 2024 to about $65.6 billion by 2034.

“Electrification and automation are needed for passenger and delivery services, but there are not enough electric vehicles and charging infrastructure to meet that need today,” said Will Graylin, CEO of indiGOTech. “Through our long-term partnership with LG Energy Solution, advanced automotive battery technology will deliver better economics for vehicles, drivers, and fleet operators.”

“Securing a new U.S. customer on the strength of our NCM-based 46-series batteries, which offer high energy density and fast charging, is significant,” said Oh Seong-hwan, head of the Marketing Group in LG Energy Solution’s Small Battery Business Division. “Building on this partnership, we will expand into a wider range of electric commercial vehicle markets and further accelerate growth of our 46-series business.”

Starting with this partnership, LG Energy Solution plans to expand its presence and business in North America’s electric commercial vehicle market and use that foothold to accelerate growth in its global 46-series cylindrical battery business. The company plans to strengthen its local manufacturing base, including by starting operations at its cylindrical battery plant in Queen Creek, Arizona, later this year, and to accelerate efforts to win new global orders for 46-series cylindrical batteries.

Meanwhile, LG Energy Solution is strengthening its business competitiveness by securing additional customers for its 46-series cylindrical batteries. The company said shipments of cylindrical batteries in the second quarter of this year were 1.5 times higher than a year earlier, supported by stable mass production and increased shipments of 46-series batteries.