Proterra Inc. concluded negotiations with LG Energy Solution on a new agreement that will provide Proterra with a long-term supply of cylindrical cells produced at an LG Energy Solution battery cell manufacturing plant in the U.S.

The U.S.-manufactured battery cells will be delivered to Proterra factories for the manufacture of the company’s industry-leading commercial electric vehicle battery systems. Proterra will commit upfront a low nine-figure sum under the agreement to secure multiple gigawatt hours of dedicated U.S.-manufactured battery cell capacity on an annual basis.

In addition to the U.S.-manufactured battery cells that will be supplied to Proterra under the new agreement, Proterra and LG Energy Solution have extended their existing battery cell supply agreement through 2024. Together, this secures Proterra a stable supply of LG Energy Solution battery cells through 2028.

Both Proterra and LG Energy Solution plan on getting approval by their board of directors for the agreement and the investment by Q4 of 2021, respectively.

Since 2016, Proterra and LG Energy Solution engineering teams have been collaborating to maximize cell performance to meet the stringent requirements of commercial vehicle markets. The cylindrical cells to be manufactured at the new LG Energy Solution plant will feature a new, high nickel NMCA chemistry ideal for commercial vehicle and industrial applications. With the introduction of cylindrical cells manufactured in the U.S., Proterra battery systems will further meet content requirements under the United States-Mexico-Canada Agreement.

Designed and manufactured in the U.S., Proterra’s battery systems have been proven through more than 20 million service miles driven by its transit customers and selected by world-class commercial vehicle manufacturers to electrify delivery vehicles, construction equipment, school buses, coach buses, and more.