LG Energy Solution to Mass Produce LFP Battery Next Year

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.