LG Energy Solution to Mass Produce LFP Battery Next Year

Published: May 25, 2022 14:17
SHANGHAI, May 25 (SMM) - On May 24, according to BusinessKorea, LG Energy Solution, the world's second largest lithium battery company, plans to produce standard-sized LFP (lithium iron phosphate) batteries from October 2023.

SHANGHAI, May 25 (SMM) - On May 24, according to BusinessKorea, LG Energy Solution, the world's second largest lithium battery company, plans to produce standard-sized LFP (lithium iron phosphate) batteries from October 2023. At the 2022 European Electronics Show held in Germany recently, LFP batteries for energy storage systems were also displayed. LG Energy Solution launched LFP batteries in a pouch. LG Energy Solution believes that in the prismatic LFP battery market monopolized by China, the packaging method of pouch can better compete. The reason why LG Energy Solution is mass-producing LFP batteries is that it is targeting the fast-growing ESS (energy storage system) market.
 Lithium iron phosphate batteries have become mainstream batteries. The latest data shows that in April 2022, China's power battery output totalled 29.0GWh, a year-on-year increase of 124.1%. The output of ternary batteries was 10.3GWh, accounting for 35.5% of total output and up 53.5% year-on-year. The output of lithium iron phosphate batteries was 18.6GWh, accounting for 64.3% of total output and an increase of 200.7% year-on-year. The production of LFP batteries exceeded that of ternary batteries for the first time in May 2021 and has grown rapidly ever since. The installed capacity of power batteries  in China totalled 13.3 GWh in April, up 58.1% year-on-year. Among them, the installed capacity of ternary batteries was 4.4GWh, accounting for 32.9% of the total installed capacity; the installed capacity of LFP batteries was 8.9GWh, accounting for 67% of the total installed capacity. After its installed capacity exceeded that of ternary batteries for the first time in July 2021, LFP battery has become the mainstream for 9 consecutive months.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Analysis] Riding the Winds In and Outside China, Breaking the Iron Law of Old Cycles: 2026 Energy Storage Battery Cell Semi-Annual Review and Outlook
10 hours ago
[SMM Analysis] Riding the Winds In and Outside China, Breaking the Iron Law of Old Cycles: 2026 Energy Storage Battery Cell Semi-Annual Review and Outlook
Read More
[SMM Analysis] Riding the Winds In and Outside China, Breaking the Iron Law of Old Cycles: 2026 Energy Storage Battery Cell Semi-Annual Review and Outlook
[SMM Analysis] Riding the Winds In and Outside China, Breaking the Iron Law of Old Cycles: 2026 Energy Storage Battery Cell Semi-Annual Review and Outlook
[SMM Analysis] In H1, the overflow of global utility-scale energy storage long-term contracts intertwined with the growing pains of production line upgrades. This not only completely shattered the cyclical pattern of "retreat after rapid rise" in the energy storage market, but also directly triggered a structural shortage and a strong price recovery for 314Ah battery cells. Furthermore, driven by the looming cancellation of tax rebates at year-end, an even more intense wave of "export rush" is gaining momentum, potentially pushing the full-year battle between volume and price to its peak.
10 hours ago
[SMM Analysis] Separator Market 2026 Semi-Annual Review: Supply-Demand Pattern Tightens Marginally, Price Center Gradually Moves Up
10 hours ago
[SMM Analysis] Separator Market 2026 Semi-Annual Review: Supply-Demand Pattern Tightens Marginally, Price Center Gradually Moves Up
Read More
[SMM Analysis] Separator Market 2026 Semi-Annual Review: Supply-Demand Pattern Tightens Marginally, Price Center Gradually Moves Up
[SMM Analysis] Separator Market 2026 Semi-Annual Review: Supply-Demand Pattern Tightens Marginally, Price Center Gradually Moves Up
Production-wise, China's cumulative production of lithium battery separators from January to June was approximately 17.416 billion m², of which wet-process separators accounted for 15.005 billion m², or 86.16%, and dry-process separators accounted for 2.411 billion m², or 13.84%.
10 hours ago
【SMM Analysis】2026 H1 Lithium Carbonate Market Review and H2 Outlook
10 hours ago
【SMM Analysis】2026 H1 Lithium Carbonate Market Review and H2 Outlook
Read More
【SMM Analysis】2026 H1 Lithium Carbonate Market Review and H2 Outlook
【SMM Analysis】2026 H1 Lithium Carbonate Market Review and H2 Outlook
From a supply-demand balance perspective, China's lithium carbonate market exhibited a tight balance in H1 2026, with sellers and buyers continuously seeking new equilibrium points amid bargaining.
10 hours ago
LG Energy Solution to Mass Produce LFP Battery Next Year - Shanghai Metals Market (SMM)