The world's second largest battery giant began to produce lithium iron phosphate batteries!

According to foreign media reports, LG Energy Solutions, which was spin-off from LG Chem’s battery business and was formally established on December 1 last year, is a manufacturer of LG Chem’s battery business that focuses on electric vehicle batteries. With years of hard work in the field, LG Energy Solutions has been a large-scale company since its establishment. It is currently the world's second largest battery giant and a major global battery supplier.

But surprisingly, LG Energy Solutions, a large-scale company that supplies batteries to many manufacturers, did not get involved early in the field of lithium iron phosphate batteries with better stability. It only started research and development last year.

LG Energy Solutions only started to develop lithium iron phosphate batteries last year, which was first reported by South Korean media.

South Korean media said in the report that according to what they learned, LG Energy Solutions started to develop lithium iron phosphate battery technology in their laboratory in Daejeon, South Korea at the end of last year.

In the report, South Korean media also mentioned that LG Energy Solutions is expected to build a trial production line for lithium iron phosphate batteries as early as next year. It is reported that the packaging form of LG New Energy's lithium iron phosphate battery is a soft pack.

As a new company spun off from LG Chem, LG Chem will also participate in the development of the lithium iron phosphate battery business of LG Energy Solutions. South Korean media mentioned in the report that LG Chem may establish a joint venture with other manufacturers to supply the raw materials required for the production of lithium iron phosphate batteries for LG Energy Solutions.

At present, LG New Energy is the world's second largest power battery giant, second only to the Ningde era.

LG New Energy’s parent company is LG Chem. Public information shows that LG Chem was founded in 1947. Since 1995, LG Chem has begun research on lithium-ion batteries. In 1999, LG Chem became the first domestic company to mass-produce small lithium-ion batteries.

In 2000, LG Chem began researching and developing power lithium batteries at its Michigan R&D base. In 2009, LG Chem first applied its independently developed lithium-ion batteries to commercial electric vehicles.

In December 2020, LG Chem released the benchmark for the spin-off of the battery business and set it as a new company (now LG New Energy). LG New Energy is currently applying for an IPO.

In the field of power batteries, in 2020, LG New Energy once surpassed the Ningde era and ranked first in the world. It was not until September 2020 that the CATL "snatched" back to the world's number one throne and lasted until the end of the year.

From the perspective of the whole year of 2020, the market share of power lithium battery shipments of CATL is only 1% higher than that of LG New Energy, and the market share of power lithium battery installed capacity is 2.2% higher than that of LG New Energy.

In July 2021, the South Korean market research organization SNE announced the global power battery installed capacity in May 2021, showing that LG New Energy surpassed the Ningde era and ranked first in the global power battery installed capacity by 3.7 times year-on-year to 5.7GWh.

However, from January to May, CATL still ranked first with 22.1GWh installed capacity, with a market share of 27.1%; LG New Energy ranked second with a difference of 0.4GWh, with a market share of 26.6%.

It is worth noting that due to battery problems, among the electric vehicles recalled by Hyundai Motors, LG New Energy is "back-to-back" and is expected to lose more than 5.6 billion yuan. Among the electric vehicles recalled by General Motors twice, they are also in line with LG New Energy's The battery defect is related.

It is understood that GM’s recall is expected to cost US$1 billion (about 6.5 billion yuan), and GM said it is considering a claim against battery supplier LG New Energy.

LG New Energy urgently needs to improve the safety of power batteries. It just so happens that lithium iron phosphate batteries are an option, and LG New Energy's entry into the field of lithium iron phosphate batteries is natural.

This is the transformation of LG New Energy.

Lithium iron phosphate batteries are being used on a larger scale with their advantages of safety, lower cost, and longer life.

LG New Energy has deployed lithium iron phosphate batteries. In the future, it is not ruled out that overseas battery giants such as Panasonic, Samsung SDI, and SKI will also deploy lithium iron phosphate batteries!