Electric vehicle battery technology is evolving. For a long time, electric vehicle manufacturers mainly used ternary batteries made by combining three metal elements: nickel, cobalt, and manganese. However, recently, batteries have been developed that improve performance while reducing expenses by increasing the content of cheaper metals.
According to the battery industry on the 31st, LG Energy Solution is in discussions with General Motors (GM) about converting part of their joint factory in Tennessee, USA, to an LFP (Lithium Iron Phosphate) battery production line. Samsung SDI is also reported to be reviewing plans to produce LFP batteries at a joint factory with GM that will be completed in Indiana in 2027.
LFP batteries are lithium-ion batteries made from inexpensive iron phosphate instead of the expensive nickel and cobalt, making them cheaper than conventional ternary batteries. According to the automotive industry, replacing ternary batteries with LFP batteries can reduce electric vehicle prices by about 30%.
In the past, LFP batteries were primarily used in Chinese electric vehicles. However, as the demand for electric vehicles has continued to slow over the years, many global automotive manufacturers are increasingly applying the cheap LFP batteries.
GM is equipping models like the Bolt, Equinox, and Blazer with LFP batteries, and Hyundai also noted that it plans to receive new LFP batteries from the Chinese battery manufacturer CATL at 'Auto China 2024' held in Beijing last year. It has been reported that Mercedes-Benz, Volkswagen, and Tesla also plan to equip LFP batteries in their future electric vehicle productions.
While LFP batteries are cheaper than ternary batteries, they have the drawback of lower energy density. The energy density of a battery is generally indicated in watt-hours (Wh) per kilogram of battery. A higher energy density allows for the use of more energy at the same weight. The energy density of LFP batteries is approximately 160Wh/kg, lower than the density of 250Wh/kg for ternary batteries. Therefore, to achieve performance similar to that of ternary batteries, LFP batteries must necessarily be much heavier.
To overcome the limitations of LFP batteries, domestic battery manufacturers are focusing on the development of LMR (Lithium Manganese Rich) batteries. LMR batteries can minimize the content of cobalt and nickel while increasing the content of relatively inexpensive manganese, securing price competitiveness. Their energy density is about 33% higher than that of LFP batteries. In simpler terms, LMR batteries are considered to have the advantages of both ternary batteries and LFP batteries.
In the LFP battery market, Chinese manufacturers like CATL and BYD are in the lead, but domestic corporations are ahead in the LMR battery sector. LG Energy Solution currently holds over 200 patents for LMR batteries and plans to enter mass production in partnership with GM starting in 2028. Battery material corporation POSCO FUTURE M also announced that it has completed the development of LMR cathode materials as of the 27th of last month and plans to secure mass production technology and pursue large-scale orders within this year. It was also explained that long-term research and development have improved the cycleability performance of LMR cathode materials, resolving obstacles to commercialization.
Some domestic battery material corporations are developing cathode materials that will be used in ultra-high-density LFP batteries. Ultra-high-density LFP batteries maintain the basic manufacturing methods of standard LFP batteries while significantly increasing energy density to overcome their drawbacks.
The density of battery cathode materials is expressed in mass (g) per volume (cc), and generally, if it exceeds 2.7g/cc, it is classified as ultra-high-density LFP battery cathode material. This level is about 20% higher than the density of high-density cathode materials produced by current Chinese companies, which ranges from 2.2 to 2.4g/cc.
L&F, a domestic battery material corporation, announced plans to mass-produce ultra-high-density LFP battery cathode materials exceeding 2.7g/cc within the next year and to establish production facilities in the U.S. starting in 2027. ECOPRO BM also plans to begin trial production of similarly leveled ultra-high-density LFP cathode materials from the second quarter of this year.