Samsung SDI said Tuesday it has been picked by German firm Akasol to supply battery cells and modules for commercial vehicles’ power systems.

The South Korean battery maker signed an agreement with Akasol, the leading manufacturer of high-performance lithium-ion battery systems in Germany at the International Motor Show in Frankfurt for two large orders for global commercial vehicle makers.

Under the agreement, Samsung SDI will supply its battery cells and modules with a total volume of 13 gigawatts per hour to the German firm from 2020 through 2027. 

“With this agreement, Akasol has secured Samsung SDI’s leading battery cell technology as it prepares for dynamic growth in the coming years,” the German firm said in a press release.

Samsung and Akasol have been working together since the first generation of Akasol’s battery systems, and described the latest deal as an “expansion of the relations with Samsung.”

The battery cells and modules will be produced in Europe and Asia, after which they will be built into the German manufacturer’s various battery modules and systems at its existing production site in Langen, Germany, as well as at the new headquarters in Darmstadt.

The latest deal follows Samsung’s partnership with the world’s largest commercial vehicle maker Volvo announced in July.

By Song Su-hyun (song@heraldcorp.com)