Batteries for electric vehicles with cells type LFP (lithium iron phosphate) are becoming increasingly popular due primarily to their lower cost compared to batteries with NMC (Nickel-Manganese-Cobalt) type cells. Some car manufacturers have focused on these batteries in order to be able to offer electric vehicles at a lower cost. We think, for example, Tesla and Ford which recently announced the construction of a 35 GWh LFP plant in Michigan in partnership with CATL.
These batteries were mainly invested Chinese companies which today can count on an important advantage. According to Bloomberg, even I three major Korean battery manufacturers and this LG Energy Solution, Samsung SDI and SK On decided to shift their focus to batteries with LFP cells.
So far, these companies have not invested in these batteries due to some of their limitations, including lower energy density and poor performance at low temperatures. However, research continues and Chinese companies have made major breakthroughs, especially CATL. It was these advances that convinced Korean companies to focus on this technology for electric vehicle batteries.
By all appearances, the most advanced of all will be the SK, which showed off a product at the InterBattery 2023 event in Seoul last March that can perform well at low temperatures. LG Energy Solution and Samsung SDI are also working on developing their LFP cells. LG plans to build an LFP plant for energy storage systems in Arizona, and Samsung has joined a Korean government-led project to produce LFP batteries by 2026.
LG is also reportedly in talks with several automakers to supply them with LFP batteries. According to James Oh, vice president of SNE Research, Korean battery manufacturers they will have to build separate factories for LFP cells due to their different manufacturing process. LFP batteries cannot be manufactured in the same factories as nickel batteries. However, despite the gap with Chinese manufacturers, Korean companies will not stand aside for now. However, as Hanwha Investment & Securities analyst Jongwook Lee points out, the real question is whether Korean-made LFP batteries will they will be competitive like Chinese companies at prices.
Either way, this is good news for the automotive sector as car manufacturers look to this battery technology with growing interest.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.