LG Energy Solution to Begin Domestic Production of LFP Batteries for ESS, Initiates Supply Chain Localization

Production System Established at Ochang Energy Plant in Cheongju
Leveraging Unique Mass Production Experience Among Domestic Companies
Aiming for Mass Production in 2027... Reducing Dependence on China

LG Energy Solution has established a production line for LFP (lithium iron phosphate) batteries for energy storage systems (ESS) at its Ochang plant in Cheongju, North Chungcheong Province, and has announced plans to begin mass production in 2027. This marks the opening of a new pathway for full-scale domestic production of LFP-based ESS batteries, which had previously relied on overseas sources.

On November 17, LG Energy Solution and North Chungcheong Province held an event at the Ochang Energy Plant to announce the domestic production schedule for LFP batteries for ESS and unveil plans for regional industrial cooperation. LG Energy Solution will begin constructing the production line by the end of this year and start with an initial capacity of 1GWh. The company will consider expanding production depending on market conditions. Kim Hyungsik, Head of the ESS Battery Division at LG Energy Solution, stated, "The Ochang Energy Plant is the development and manufacturing hub for LG Energy Solution. Producing LFP batteries for ESS here marks the starting point for advancing the domestic ESS industry ecosystem."

Aerial view of LG Energy Solution's Ochang Plant. LG Energy Solution

LG Energy Solution is the only non-Chinese company to have successfully mass-produced LFP batteries for ESS. In 2024, it began mass production of LFP ESS batteries at its Nanjing plant in China, and in June, it commenced production at its Michigan plant in the United States. Leveraging this experience, the company has signed supply agreements with global ESS firms. As of the third quarter of this year, LG Energy Solution has secured a global ESS project order backlog totaling approximately 120GWh, with further supply discussions underway.

The company explained that it plans to apply the operational expertise gained from its Nanjing and Michigan plants to the Ochang production process. In Korea, there is a lack of commercial-scale production infrastructure for key materials such as LFP cathode materials and electrolytes, so LG Energy Solution is also exploring collaboration opportunities with North Chungcheong Province and domestic materials, parts, and equipment companies.

According to market research firm SNE Research and others, over 90% of global ESS installations are based on LFP technology. LFP is considered superior in terms of cost, heat resistance, and safety. Most of the major projects LG Energy Solution has secured in North America and Europe are also designed with LFP technology.

LG Energy Solution reported that its LFP cells have met the 'UL9540A' standard, the U.S. safety certification agency's requirement for fire propagation prevention. Furthermore, in large-scale fire simulation tests, only smoke was generated without flames during thermal runaway, and the event did not spread to adjacent modules. The company attributed this achievement not only to the quality of its cells but also to the integration of its battery management system (BMS) and advanced module and pack design technologies.

LG Energy Solution announced plans to strategically expand its ESS business based on stable supply capabilities and safety. The company expects continued growth in ESS demand due to structural factors such as the expansion of renewable energy and increasing data center loads. LG Energy Solution anticipates that the Ochang project will serve as a catalyst for enhancing the competitiveness of domestic production, materials technology, and the overall supply chain.