LG Energy Solution Secures 160,000 Tons of LFP Cathode Material in China

LG Energy Solution has begun full-scale supply chain construction to expand its LFP (Lithium Iron Phosphate) battery business.

On the 22nd, LG Energy Solution announced that it has signed a long-term supply contract for LFP battery cathode materials for electric vehicles and ESS with Chinese cathode material manufacturer Shangzhou Liwon.

LG Energy Solution is scheduled to receive approximately 160,000 tons of cathode materials used in LFP batteries from Shangzhou Liwon over the next five years starting this year. This amount is enough to produce batteries for 1 million electric vehicles capable of driving over 400 km. The two companies plan to discuss additional supply contracts in the future depending on market conditions.

Shangzhou Liwon, established in Nanjing, China in 2021, is a specialized manufacturer of cathode materials for LFP with an annual production capacity of 310,000 tons. It also has production facilities in Indonesia capable of producing about 30,000 tons of LFP battery cathode materials and plans to expand this capacity to 120,000 tons in the future.

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Through this supply contract, LG Energy Solution will be able to accelerate its competitiveness in the LFP battery market.

Since the end of last year, LG Energy Solution has started full-scale production of LFP for ESS at its Nanjing plant in China. For electric vehicle LFP batteries, it is preparing for mass production in the second half of 2025 and is in discussions with various customers to secure new supply sources in Europe and North America.

LG Energy Solution leads the global market in premium product lines through NCM (Nickel Cobalt Manganese) and high-nickel NCMA. In the mid-to-low price range, it is strengthening its new product portfolio with high-voltage mid-nickel (Mid-Ni) and pouch-type LFP batteries to meet diverse customer demands.

LG Energy Solution stated, "Based on over 30 years of accumulated experience and overwhelming technological capabilities, we will further enhance product competitiveness and provide differentiated customer value."

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