LG Energy aiming to develop LFP batteries with higher performance than CATL’s
Energy density upped by 20% However, commercialization will take years
LG Energy Solution was currently developing lithium iron phosphate (LFP) batteries for electric vehicles.
The aim is to have the LFP batteries have higher performance than those made by rival CATL, sources said.
LG Energy Solution’s version uses a cobalt-free cathode and is a pouch type.
In its research stage, the battery had 20% higher density than those supplied to Tesla Model 3 by CATL, sources said.
However, the battery also costs more to make than those manufactured by the Chinese battery maker, they added.
LG Energy Solution is likely aiming to supply them to Tesla. The South Korean company currently manufactures mostly nickel, cobalt, and manganese-based batteries.
However, the development of batteries usually takes years to finish. And LG Energy Solution must prove its LFP battery capability; it has one version in the pipeline aimed at energy storage solutions, which will begin sales during the first half of 2023.
However, for Tesla, LG Energy Solution is an attractive supplier to have as it can benefit from the Inflation Reduction Act in the US, unlike Chinese battery makers.