[News Article] LG Energy signs multi-billion-dollar LFP battery deal with Renault
LG Energy signs
multi-billion-dollar LFP battery deal with Renault
By Hyung-Kyu Kim,
The Korea Economic Daily - LG Energy Solution Ltd., the world’s second-largest
battery maker, has clinched a multi-billion-dollar deal to supply LFP batteries
for low-end electric vehicles to Renault Group’s EV unit Ampere. The South Korean
battery maker said on Tuesday the two sides signed the deal at Renault’s
headquarters in Paris on Monday, attended by executives, including Suh
Won-joon, executive vice president and head of the advanced automotive battery
division at LG, and Josep Maria Recasens, Renault Group’s chief strategy
officer and Ampere’s chief operating officer. Under the five-year
contract, LG will provide LFP, or lithium ion phosphate, batteries to Ampere
from late 2025 through 2030, with a total capacity of some 39 GWh, enough to
produce 590,000 battery EVs. The batteries, to be
manufactured at LG Energy’s Poland facility, will power Ampere's
next-generation EV models. The deal’s value
wasn’t known, but industry watchers said it would be trillions of won, or
multi-billion dollars. “We will provide the
best customer value to Ampere through our overwhelming technological prowess
and quality,” said LG Energy’s Suh. François Provost,
Renault’s chief procurement, partnership and public affairs officer said: “We
worked hand in hand with LG to set up an integrated value chain in Europe. Our
long-term relationships have enabled us to build this unique solution in terms of
technology and competitiveness.” KOREA’S FIRST
MEGA-DEAL BEATING LFP SUPER POWER CHINA LG said the latest
deal represents its and Korea’s first large-scale LFP battery supply deal in
Europe, one of the world’s fastest-growing EV markets. Korea’s three major
battery makers – LG Energy, SK On Co. and Samsung SDI Co. – have concentrated
on expensive nickel-cobalt-manganese (NCM) cells. However, they are now
shifting gears to produce low-end LFP cells on growing demand from Tesla Inc.
and other major EV makers. LFP batteries are
mostly made by Chinese companies, including Contemporary Amperex Technology Co.
Ltd. (CATL), the world’s top battery maker, and BYD Co. LFP cells are lower
in energy density but cheaper to make compared to other types such as NCM
batteries, and thus more suitable for low-end EV models. LFP batteries are also
more stable, meaning less vulnerable to fire. LG Energy has
switched part of its energy story system (ESS) production lines at its plant in
Nanjing, China to produce LFP batteries with a plan to begin mass production in
2025. CELL-TO-PACK
SOLUTIONS LG said it is
providing Renault’s pure EV player Ampere with pouch-type LFP batteries made
with cutting-edge cell-to-pack (CTP) manufacturing technology. CTP refers to a
technology that bypasses the module stage to make cells into a pack structure.
Compared with the general battery structure, the module-free structure reduces
weight and manufacturing costs and increases space utilization, according to
LG. LG said it is the
industry’s first to apply the technology to pouch-type batteries. CTP-applied
pouch-type batteries boast about 5% higher energy density per weight compared
with prismatic CTP tech batteries. LG said it has also enhanced battery safety
by increasing the toughness of the battery pack and applying heat transfer
prevention technology. LG’S EXPANDED
BATTERY PORTFOLIO With the latest
supply deal, LG has expanded its product portfolio in pouch-type batteries
encompassing various chemistries such as high-nickel NCMA, high-voltage
mid-nickel NCM and LFP. LG said a wide range
of products will allow it to serve various consumer needs from premium EVs to
more affordable entry-level segment vehicles. “Through this
partnership with Ampere, our unrivaled product competitiveness and
differentiated customer value have been recognized once again,” said LG Energy
Chief Executive Kim Dong-myung. The CEO, also known
in the West by his English name David Kim, said: “Starting with the European
market, we will keep expanding our supply of automotive LFP batteries.” LG is also an active
battery player in the US, where it operates its own battery plants and a joint
venture, Ultium Cells LLC, with General Motors. Source:
https://www.kedglobal.com/batteries/newsView/ked202407020005
2024.07.02
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