• Promises 20% higher energy density
• May qualify for Uncle Sam’s IRA exemptions

According to industry sources, LG Energy Solution is currently working on developing lithium iron phosphate (LFP) batteries that are specifically designed for electric vehicles.

The goal is to produce batteries that outperform those made by its main competitor, Chinese battery maker CATL.

LG Energy Solution’s version of LFP batteries features a cobalt-free cathode and comes in a pouch type. While still in the research stage, the LFP battery reportedly has a 20% higher density than those supplied to Tesla Model 3 by CATL.

Although the LG Energy Solution’s LFP battery is more expensive to produce than those manufactured by CATL, the South Korean company is likely aiming to supply these batteries to Tesla.

Currently, LG Energy Solution manufactures mostly nickel, cobalt, and manganese-based batteries. However, developing a battery takes years to finish, and the company needs to prove its LFP battery capability.

At present, it has one version in the pipeline aimed at energy storage solutions, which will be available for sale during the first half of 2023.

While the specifics of how LG Energy Solution achieved a 20% higher density in its lithium iron phosphate (LFP) batteries are not publicly known, there are several ways that battery manufacturers can increase energy density.

One approach is to increase the cathode and anode material’s surface area, which can be achieved through various methods such as changing the composition, morphology, or structure of the materials. This can increase the capacity of the battery and its overall energy density.

Another approach is to improve the electrolyte, which is the medium that allows ions to move between the cathode and anode. A better electrolyte can increase the battery’s efficiency, leading to higher energy density.

It’s also possible that LG Energy Solution utilized new manufacturing techniques or used proprietary materials to achieve the higher density. Whatever approach was used, the 20% increase in density could potentially be a significant advantage for LG Energy Solution in the highly competitive EV battery market.

For Tesla, LG Energy Solution is an attractive supplier as it can benefit from the Inflation Reduction Act in the US, unlike Chinese battery makers.

However, the development of a new battery technology takes time, and LG Energy Solution still needs to prove the capabilities of its LFP batteries.

Additionally, the fact that these batteries are more expensive to produce than those of CATL could impact their competitiveness in the market.

This is a development to watch for in the future.

By the way, here are the top 10 largest battery companies in the world by revenue:

1. Contemporary Amperex Technology (CATL)
2. Panasonic Corporation
3. BYD Company
4. LG Energy Solution
5. Tesla, Inc.
6. Samsung SDI
7. Johnson Controls International
8. Hitachi Chemical
9. Envision AESC
10. Lishen Battery