Korean giant LG Chem has agreed to supply batteries to Audi for hybrids and plug-in hybrids, and the companies will collaborate on various future plug-in projects, according to Reuters.

“The batteries will be used in Audi’s next-generation plug-in hybrid electric vehicles. Given that Audi shares many auto platforms with parent Volkswagen, we expect more such deals from the German auto group,” LG said in a statement Wednesday.

Speaking at the launch of the A3 Sportback e-tron earlier this month, Audi Board Member for Technical Development Ulrich Hackenberg said that the company plans to have a plug-in hybrid version of each of its “key models” by 2020,

Hackenberg said Audi had decided to prioritize plug-in hybrids because “they meet all of our customers’ expectations,” and that it is developing two PHEV families.

SEE ALSO: LG Chem will supply batteries for 200-mile EV in 2016

LG Chem currently supplies lithium-ion batteries to GM, Ford, Hyundai-Kia, Renault, Volvo, and other OEMs. A company exec recently said that it plans to supply batteries to an unnamed automaker for an EV with more than 200 miles of range in 2016.

Source: Reuters, Wall Street Journal