According to foreign media reports, South Korean battery maker LG New Energy CEO Kwon Young-soo said at the shareholders meeting that the company will start producing lithium iron phosphate (LFP) batteries for electric vehicles from 2025.
Lithium iron phosphate batteries use cheaper, more abundant metals as raw materials, and most importantly, the chemical composition is less volatile, which makes iron phosphate batteries safer than batteries that require nickel and cobalt.
In February of this year, foreign media reported that LG New Energy is developing lithium iron phosphate batteries for electric vehicles. The lithium iron phosphate batteries developed by the company will use cobalt-free cathodes and be of the pouch type, rather than the prismatic or cylindrical cells favored by Chinese battery makers. The company’s goal may be to supply lithium iron phosphate batteries to Tesla.
At the time, the source said the company aimed to make the battery outperform the battery produced by its rival CATL, with a 20% higher energy density than CATL’s battery for Tesla’s Model 3.
Before producing lithium iron phosphate batteries for electric vehicles, Kwon Young-soo said that LG New Energy will start producing lithium iron phosphate batteries for energy storage systems this year.
He also said that talks between LG CELL and Toyota Motor over a potential collaboration, including the possibility of a joint venture, are progressing well, without elaborating.
LG New Energy is a new company spun off from LG Chem in December 2020, specializing in the battery business, and its customers include Tesla, General Motors and Volkswagen. After the spin-off, LG Chem will hold 100 percent of the new company.
In January of this year, foreign media reported that LG New Energy plans to develop a lithium-sulfur battery within three years, which means the company aims to commercialize the battery in 2027.