This file photo provided by LG Energy Solution shows its plant in Poland. (Image courtesy of Yonhap)
SEOUL, Jul. 2 (Korea Bizwire) — LG Energy Solution Ltd. (LGES), South Korea’s leading battery maker, said Tuesday it has signed a deal to supply lithium iron phosphate (LFP) batteries for Renault S.A.’s electric vehicles.
Under the five-year contract through 2030, LGES will supply LFP pouch-type batteries to Renault’s EV division Ampere, with a total capacity of 39 GWh that can power 590,000 EVs, the company said in a statement.
It is the company’s first large-scale supply deal of LFP EV batteries, whose market has been dominated by non-Korean manufacturers. The batteries will be produced at LGES’ Poland plant, it said.
“Starting with the European market, we will keep expanding our supply of automotive LFP batteries. Moreover, we will continue to provide the world’s best customer value through our proven operational excellence and differentiated product portfolio,” LGES CEO David Kim said in the statement.
The company didn’t provide the value of the contract.
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 (NCM) batteries adopted by Korean companies.
Europe is one of the three largest markets for EVs. And local demand for affordable entry-level EVs is growing, pushing up the demand for LFP batteries as well, the statement said.
(Yonhap)
