LFP Batteries Examined by LG and SK: Affordable and Safe...

LFP Centered on China, Global Adoption Increasing
"Only an 8% Difference Considering Energy Density"
Material and Technology R&D Leadership Still with Ternary System

Tesla logo at a shopping complex in Beijing, China. Tesla, the world's number one electric vehicle maker, uses LFP batteries for some models sold locally.

[Asia Economy Reporter Choi Dae-yeol] The choice of cathode materials, which directly affects battery capacity, is a matter of great interest for both battery manufacturers and automakers. This is because it is directly linked to driving performance as well as vehicle price. The number of electrons stored varies depending on the active material that characterizes the cathode, which in turn determines the battery capacity and voltage.

Recently, lithium iron phosphate (LFP) batteries have been gaining attention. LFP is a classification based on the type of active material and has been widely used mainly by battery companies in China. For electric vehicle batteries, nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA), which uses aluminum instead of manganese, are also commonly used.

Last year, Tesla attracted attention by deciding to source LFP batteries from CATL. Volkswagen and General Motors (GM) also use LFP batteries in models produced and sold in China. Domestic battery companies have mainly used NCM and NCA with increased nickel content to enhance energy density, but recently they have also shown interest in LFP. LG Energy Solution and SK On have officially announced their review of LFP. As electric vehicle adoption increases and customer demands diversify, they intend to prepare a product lineup accordingly.

LFP is known to have lower energy density compared to high-nickel batteries but is cheaper and has a lower risk of fire. However, there are criticisms about whether such comparisons are appropriate. According to recent data compiled by Samsung Securities analysts Jang Jeong-hoon and Ahn Jae-hyun, the claim that LFP is cheaper is merely a simple comparison of raw material costs; when considering actual driving performance, there is not much difference compared to ternary batteries using nickel and others.

Analyst Jang Jeong-hoon of Samsung Securities and others released the report "LFP Cathode and Ternary Anode" last month ＜Source: Samsung Securities Website＞

According to the data, NCM622 (nickel:cobalt:manganese 6:2:2) is about 2.3 times more expensive than LFP. This is based on the assumption of the same input amount. Assuming that the energy density per weight of LFP is about 70% of NCM, the cathode material capacity required for a 1 kWh battery is approximately 1.5 kg for NCM622 and 2.1 kg for LFP. Assuming other materials besides cathode materials are the same, the cost difference in raw materials is about 14%, and when made into battery cells, the difference narrows to about 8%. Considering that LFP is heavier even with the same battery capacity, the driving range inevitably decreases.

They also pointed out that safety needs to be examined further. Since LFP also contains electrolytes that can catch fire, it can ignite under certain conditions. Chinese BYD electric vehicles, which mainly use LFP batteries, have experienced several fire incidents during charging or accidents. Additionally, in terms of material improvements to increase energy density, ternary batteries are considered better than LFP. According to the data, CATL, which has emerged as the world’s number one battery maker, plans to increase LFP production capacity from 23 GWh to 204 GWh by 2025, a 410% increase, while ternary batteries will increase from 70 GWh to 456 GWh, a 551% increase. Based on the global market outside China, the report concludes that the dominance of cathode materials still lies with high-nickel ternary batteries rather than LFP.

Hongguang Mini EV launched by GM and Wuling in the Chinese market. It uses an LFP battery.

This content was produced with the assistance of AI translation services.