LG Energy Solution targets indiGOtech cylindrical cell pact

LG Energy Solution advanced negotiations on Oct. 17 to supply 46-series cylindrical battery cells to American commercial vehicle developer indiGOtech, seeking new volume outside passenger electric cars.

The discussions build on a bilateral memorandum of understanding signed earlier in October to deliver cells from 2027 through 2030, according to company disclosures.

LG Energy Solution increased cylindrical cell shipments 1.5 times year-on-year in the second quarter of 2026, driven by higher deliveries across specialized transport and energy hardware.

The proposed supply arrangement focuses on two upcoming electric utility models from indiGOtech, named the Flow Ride passenger vehicle and the Flow Cargo delivery van.

Both vehicle platforms rely on duty cycles requiring frequent rapid charging and durable power output throughout daily urban commercial transit routes.

indiGOtech is based in Woburn, Massachusetts, and develops light electric commercial platforms tailored for North American fleet operations, the startup said.

The vehicle chassis incorporates in-wheel electric propulsion and active suspension hardware known as SmartWheels, which positions drive components inside the wheel assemblies.

That architectural layout removes conventional axles and drive shafts, expanding interior cabin space and lowering floor height for delivery and passenger operations.

Wider flat floors and low-step access provide key ergonomic advantages for parcel couriers who enter and exit delivery vans dozens of times each day.

Growth in retail passenger electric car sales has slowed across Western markets, prompting cell manufacturers to target commercial fleets that run fixed daily mileage.

Commercial fleet managers purchase vehicles based on total operating expenditure per mile rather than retail consumer subsidies, providing stable procurement schedules for battery producers.

Global spending on electric commercial vans reached $16.3 billion in 2024, according to market data published by research firm Global Market Insights.

The research firm projects that electric van spending will increase at a 15.5% compound annual growth rate to roughly $65.6 billion by 2034.

LG Energy Solution plans to supply North American fleet customers directly from its cylindrical battery plant under construction in Queen Creek, Arizona.

The Arizona facility serves as the company's dedicated manufacturing hub for next-generation 46-series cylindrical cells in the United States, the company said.

Domestic production within the United States allows vehicle assemblers to satisfy federal clean vehicle content rules and avoid high transpacific maritime shipping expenses.

The 46-series format features a 46-millimeter diameter and uses nickel-cobalt-manganese cathode chemistry engineered for high volumetric energy density.

The larger cylindrical dimensions store five times more energy than standard 2170 cylindrical cells, allowing automakers to use fewer individual units per pack.

Fewer cells reduce the number of electrical wiring connections and monitoring sensors inside the pack enclosure, lowering pack assembly costs on automated production lines.

The design also provides improved thermal dissipation characteristics, allowing cells to sustain high electrical currents during DC fast charging without degrading chemical longevity.

The two companies agreed to conduct technical evaluations to extend driving range and shorten fleet charging downtime, LG Energy Solution said.

Joint engineering groups are testing cell integration with indiGOtech's battery management software to match pack discharge behavior with urban stop-and-go driving profiles.

indiGOtech intends to link the vehicle platforms with a proprietary service network providing bundled charging infrastructure, digital dispatch software and maintenance support.

Will Graylin, chairman and chief executive of indiGOtech, said purpose-built commercial chassis are necessary because conventional passenger electric cars fail under heavy fleet wear.

The non-binding memorandum of understanding does not state contract values, confirmed cell delivery volumes, or guaranteed minimum financial figures.

LG Energy Solution has not filed a definitive commercial supply contract on the Korea Exchange regarding binding procurement terms with indiGOtech.

Commercial operations at the Queen Creek cylindrical battery plant are scheduled to begin before the end of 2026.

The two companies plan to conclude binding contract negotiations before indiGOtech begins commercial vehicle production in 2027.