LG new energy CEO: will start producing lithium iron phosphate batteries for electric vehicles from 2025
According to foreign media reports, Kwon Young-soo, CEO of LG New Energy, a South Korean battery manufacturer, said at the shareholders' meeting that the company would start producing lithium iron phosphate (LFP) batteries for electric vehicles from 2025.
Lithium iron phosphate batteries use cheaper, richer metals as raw materials and, most importantly, less volatile chemicals, which makes iron phosphate batteries safer than those that require nickel and cobalt.
In February this year, foreign media reported that LG New Energy was developing lithium iron phosphate batteries for electric vehicles. The lithium iron phosphate battery developed by the company will use a cobalt-free cathode and a soft bag type rather than the prismatic or cylindrical battery favoured by Chinese battery makers. The company's goal may be to supply lithium iron phosphate batteries to Tesla.
At the time, sources said the company's goal was to make the battery better than its rival Ningde era, which had a 20 per cent higher energy density than the battery supplied to Tesla Model 3 by Ningde era.
Before producing lithium iron phosphate batteries for electric vehicles, Kwon Young-soo said LG new energy will start producing lithium iron phosphate batteries for energy storage systems this year.
In addition, he said negotiations between LG New Energy and Toyota on potential cooperation were progressing well, including the possibility of a joint venture, but did not elaborate.
LG New Energy is a new company that was spun off from LG Chemical (LG Chem) in December 2020 and specializes in battery business. Its customers include Tesla, General Motors and Volkswagen. After the split, LG Chemical will hold a 100 per cent stake in the new company.
In January this year, foreign media reported that LG New Energy plans to develop lithium-sulfur batteries within three years, which means that the company aims to commercialize such batteries by 2027.
