The image shows Samsung SDI Co.’s solid-state battery displayed during the IAA Mobility 2023 in Germany. (Yonhap)
SEOUL, July 23 (Korea Bizwire) – LG Energy Solutions Ltd. (LGES) and Samsung SDI Co., South Korea’s two leading battery makers, said Tuesday they will diversify their product lineups to better compete with global rivals, particularly from China.
LGES and Samsung SDI have focused on high-end lithium ion battery products, but they also need to produce lower-end products, such as lithium iron phosphate (LFP) batteries, to cement their leading position in the battery market.
“(LGES’) existing lineup is composed of high-performance (battery) products, but recently demand for low-end products is growing. So we will ‘aggressively’ launch such products in the markets,” Chung Geun-chang, executive vice president in charge of LGES’ Future Tech Center, said at a local battery event.
LGES has developed LFP batteries and early this month signed a five-year contract to supply LFP pouch-type batteries for Renault S.A.’s electric vehicles (EVs).
Chinese players have dominated the global LFP battery market with price competitiveness.
This photo taken July 23, 2023, shows Chung Geun-chang, executive vice president in charge of LG Energy Solutions Ltd.’s Future Tech Center, giving a briefing on the company’s battery production plans at SNE Battery Day 2024 in southern Seoul. (Yonhap)
An LFP battery is known for its enhanced safety features and low manufacturing costs despite low energy density and relatively short driving range compared with lithium-ion batteries and nickel cobalt manganese batteries adopted by Korean companies.
Samsung SDI Executive Vice President Go Joo-young said, “To achieve growth, the battery lineup has to diversify for premium, volume, to entry-level EV models.”
The battery affiliate of Samsung Group is developing LFP and higher-end solid-state batteries at the same time with an aim for mass production in 2026 and 2027, respectively, a company spokesperson said.
The battery makers said they will continue to invest in research and development activities involving car batteries despite slowing sales of EVs.
The global EV market has entered a stagnation phase, known as the “chasm,” which occurs before the widespread adoption of all-electric cars.
As for the EV chasm, Cindy Park, a managing director of Nomura Financial Investment Co., said there should be price competitiveness, improvement in EV charging infrastructure and more EV-friendly policies.
(Yonhap)
