LG Energy Solution has achieved its first large-scale order for lithium iron phosphate (LFP) batteries for electric vehicles.
On the first of the month (local time), LG Energy Solution announced the signing of a supply contract for pouch-type LFP batteries with the electric vehicle division ‘Ampere’ of Renault at Renault’s headquarters in Paris, France. Attendees included Vice President Seo Won-joon, head of the automotive battery division, Vice President Choi Seung-don, head of automotive development center, Renault’s CPO Francois Provost, and CTO Gilles Le Borgne.
The supply period is set for five years from the end of 2025 to 2030, with a total supply scale of approximately 39GWh, enough to produce about 590,000 pure electric vehicles.
This makes LG Energy Solution the first domestic battery company to secure a supply contract for vehicle LFP batteries.
Seo Won-joon, head of LG Energy Solution’s automotive battery division, stated, “We will provide the highest customer value through overwhelming technology and quality competitiveness with Renault, a leading European vehicle manufacturer.”
Francois Provost, CPO of Renault, commented, “We are building an integrated supply chain for the European market in cooperation with LG Energy Solution,” adding, “Through our long partnership, we should be able to create special solutions in both technology and competitiveness.”
■ LG Energy Solution’s LFP Competitiveness Recognized in Europe, an Electric Vehicle Battlefield
LG Energy Solution’s LFP battery supply stands out because it breaks through a stronghold of Chinese manufacturers dominant in one of the world’s three major automotive markets, Europe. The LFP battery market for electric vehicles is overwhelmingly controlled by Chinese battery companies.
An LG Energy Solution official said, “As Chinese battery companies expand their influence in the European market using low prices, this supply contract proves not only our technological and quality competitiveness but also our price competitiveness, showcasing our distinct customer value capabilities.”
LFP batteries are known for their excellent price competitiveness and safety due to the use of relatively inexpensive iron and phosphate, as well as their stable chemical structure. With the expanding electric vehicle market, demand for LFP batteries is also on the rise as demand for entry-level electric vehicles grows.
■ First Pouch Battery to Apply Cell-to-Pack Solution, Enhancing Price Competitiveness and Safety
LG Energy Solution’s LFP battery for Renault features the innovative cell-to-pack (CTP) processing solution, enhancing product competitiveness.
The cell-to-pack technology assembles a battery pack without going through a module process, making it an advanced pack design technology recently attracting attention in the electric vehicle battery market.
By removing the module stage from existing battery configurations and assembling battery cells directly into the pack, it not only reduces weight but also allows for higher energy density within the same space by fitting more cells.
Specifically, the pouch CTP that LG Energy Solution developed can be designed to have about 5% higher energy density per weight compared to prismatic CTP, providing solutions that can enhance energy efficiency depending on the vehicle type.
Safety is also greatly improved. By applying verified thermal transfer prevention technology, LG Energy Solution has created safe battery products that customers can use with peace of mind. Additionally, simplifying the components that make up the entire pack and the production process is expected to reduce manufacturing costs and enhance price competitiveness.
The battery cells are set to be produced at LG Energy Solution’s plant in Poland and will be used in Renault’s next-generation electric vehicle models.
■ A Diverse Product Portfolio from Premium to Mid-range to Provide Differentiated Customer Value
With this contract, LG Energy Solution will have a diverse product portfolio in the pouch battery field, ranging from premium products like high-nickel NCMA to mid-voltage mid-nickel (Mid-Ni) NCM and LFP batteries.
As major automakers pursue the development and production of electric vehicles across various price ranges ahead of the full-scale growth of the global electric vehicle market, this contract is expected to further strengthen LG Energy Solution’s market competitiveness.
CEO Kim Dong-myung stated, “This contract with Renault, LG Energy Solution’s oldest customer in Europe, acknowledges our unparalleled product competitiveness and differentiated customer value once again,” adding, “Starting with the fierce battlefield in Europe, we will embark on robust global LFP battery orders and continue to provide the highest level of customer value through proven local supply capabilities and an exceptional product portfolio.”
Written by Lee Sang-jin (daedusj@autodiary.kr)