Low-cost LFP (lithium ferro phosphate) batteries will soon make an entry into the South Korean battery industry. The local battery maker, SK On, has built an LFP battery prototype that’s going to give an upper hand to South Korea. With the LFP batteries, Korean battery makers can go ahead of the Chinese manufacturers.
SK On initiated the LFP developments back in 2021. Since then there have been some issues with the prototype such as unsteady mileage. However, with more consideration, the company has finally perfected it. Problems with the prototype have been resolved and now the company is looking forward to the upcoming InterBattery, one of South Korea’s leading battery exhibitions.
The exhibition has been scheduled for March 15, 16 and 17. These three days will observe all kinds of developments and the latest technologies from small to big battery companies in the battery sector. The new prototype will be displayed at the InterBattery exhibition’s COEX (Convention & Exhibition) Center in the Samseong-dong area of Seoul.
South Korea manufactured the world’s very first NCM9 battery with the help of SK On and its initiatives 5 years ago. NCM9 batteries contain up to 90 percent nickel alongside 5 percent cobalt. NCM9 as well as lithium-ion batteries are known for their high performance in the batteries and automobile industry. One example of this is Tesla. The multinational automotive company uses lithium-ion along with LFP batteries in their automobiles.
South Korea and its majority EV battery market are run by 3 big corporations – SK On, LG Energy Solution Ltd., and Samsung SDI. These 3 parties fulfil around one-third of global battery demand, making South Korea a main supplier. The battery sector has shaped the Korean economy into what it’s now. It’s one of the most powerful sectors which continues to flourish.
Nevertheless, Korean battery manufacturers are always in a tight situation with Chinese manufacturers. China has been a tough competition when it comes to cheap batteries. South Korea lacks a sellable cheaper battery version and this has been a drawback for Korean companies selling batteries for automobiles and electric devices.
But with the entry of the LFP battery, the future seems bright for Korean manufacturers like SK On. LFP batteries can be cheaper yet of excellent quality at the same time. All in all, it will be a perfect alternative for Chinese batteries. Battery makers in South Korea comprehend that tomorrow lies in the next-generation batteries such as LFP and NCM9.
2022 was a year of slowdown for most of the global markets including South Korea. When the battery companies were having a hard time, major Chinese companies created a shared gap in the market. CATL (Contemporary Amperex Technology Co. Limited), the world’s biggest lithium-ion battery manufacturer widened the gap which many South Korean companies dealing in batteries are trying to fill in.
Chinese suppliers are already capturing the global supply of LFP batteries. Ford, a leading automobile company, is purchasing from them. South Korean battery makers are gearing up by introducing new technology like SK On LFPs.
Be it cost, energy density, or issues with driving range, a great amount of focus is being channelled towards minimizing the shortcomings. Korean companies like SK On are trying to meet the large demand for inexpensive batteries.