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Lithium iron phosphate batteries with safer performance, lower cost and longer life are becoming popular all over the world.
LG New Energy, the world’s second largest battery giant, is also developing lithium iron phosphate batteries: According to Korean media THE ELEC, LG New Energy began developing lithium iron phosphate battery technology at the Daejeon Laboratory in South Korea at the end of last year. , it is expected to build a pilot line as soon as 2022.
It is reported that LG New Energy’s lithium iron phosphate batteries are packaged in soft packages. Moreover, LG Chem, the parent company of LG New Energy, will also participate in the lithium iron phosphate battery business. Korean media predicted that "LG Chem may establish a joint venture with its Chinese partners to produce lithium iron phosphate batteries for LG New Energy." Required raw materials. "
The re-emergence of lithium iron phosphate batteries
As early as the "Eleventh Five-Year Plan" period, my country comprehensively carried out key technology research and large-scale industry for electric vehicles. Chemical technology research, lithium iron phosphate battery was one of the key support projects at that time. From 2008 to 2012, the number of domestic lithium iron phosphate battery companies increased dramatically.
However, in the subsequent "range anxiety", CATL relied on energy density subsidies and "ternary lithium batteries" to help China's power battery technology break through.
At the other end of the seesaw, Waterma, which previously ranked third in the industry with its lithium iron phosphate batteries and once had a market share of 25%, declared bankruptcy. Lithium iron phosphate batteries are in a trough.
In 2020, as the energy density development of lithium batteries gradually reaches the upper limit, national subsidies gradually recede. Against the backdrop of marketization and continuous progress in iron phosphate battery technology, lithium iron phosphate batteries have re-emerged. .
In May 2021, the output of domestic lithium iron phosphate batteries surpassed that of ternary lithium batteries: in that month, the output of lithium iron phosphate batteries was 8.8GWh, accounting for 63.6% of the total output; the output of ternary batteries 5.0GWh, accounting for 36.2% of total output. This is the first time in the past three years that the output of lithium iron phosphate batteries has exceeded that of ternary batteries in a single month.
In July 2021, lithium iron phosphate batteries overtook ternary lithium batteries in terms of vehicle loading volume: In that month, my country's lithium iron phosphate batteries were installed on vehicles totaling 5.8GWh, a year-on-year increase 235.5%, a month-on-month increase of 13.4%. In contrast, the ternary battery installed in vehicles was only 5.5GWh. Although it increased by 67.5% year-on-year, it fell by 8.2% month-on-month. This is the first time that lithium iron phosphate batteries have led ternary batteries in terms of vehicle installation volume.
The transformation of the world’s second largest battery giant
Currently, LG New Energy is the world’s second largest power battery giant, second only to CATL.
The parent company of LG New Energy 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 company in South Korea to mass-produce small lithium-ion batteries.
In 2000, LG Chem began to develop power lithium batteries at its Michigan R&D base. In 2009, LG Chem applied independently developed and produced lithium-ion batteries to commercial electric vehicles for the first time.
In December 2020, LG Chem spun off the battery business and established it as a new company (now LG New Energy). LG New Energy is currently applying for an IPO.
In the field of power batteries, LG New Energy once surpassed CATL to rank first in the world in 2020. It was not until September 2020 that CATL "snatched" the world's No. 1 throne and continued until the end of the year.
Looking at the whole year of 2020, CATL’s power lithium battery shipment market share is only 1% higher than LG New Energy, and its power lithium battery installed capacity market share is 2.2% higher than LG New Energy.
In July 2021, the global power battery installed capacity in May 2021 announced by SNE, a Korean market research institution, showed that LG New Energy surpassed CATL, ranking first in the global power market with a year-on-year increase of 3.7 times to 5.7GWh. Ranked first in terms of installed battery capacity.
However, judging from the situation from January to May, CATL still ranks first with an installed capacity of 22.1GWh, with a market share of 27.1%; LG New Energy ranks second with a difference of 0.4GWh, with a market share of 22.1GWh. The share is 26.6%.
It is worth noting that among the electric vehicles recalled by Hyundai Motor due to battery problems, LG New Energy took the blame and expected losses of more than 5.6 billion yuan; among the electric vehicles recalled twice by General Motors , also related to LG New Energy’s battery defects.
It is understood that General Motors’ recall is expected to cost US$1 billion (about 6.5 billion yuan), and General Motors said it is considering claiming compensation from battery supplier LG New Energy.
LG New Energy urgently needs to improve the safety of power batteries. Fortunately, lithium iron phosphate batteries are an option, and it is natural for LG New Energy to enter the field of lithium iron phosphate batteries.
This is the transformation of LG New Energy.
Car companies are also changing
The leader of new energy vehicles is undoubtedly Tesla. The reality is that Tesla is increasingly using lithium iron phosphate batteries.
In January and February of this year, Tesla CEO Musk publicly stated on many occasions that Tesla would replace the ternary lithium batteries of some electric vehicles with lithium iron phosphate batteries.
On July 27, Tesla held a second quarter 2021 financial report conference call. Musk revealed in the conference call that Tesla will make changes in battery composition, similar to using 2/3 of iron phosphate batteries and 1/3 of nickel batteries.
On August 21, news broke from Twitter that starting from October 1, 2021, the Model 3/Y standard range version produced at Tesla’s Fremont factory in California, USA, will use the Chinese lithium iron phosphate batteries.
In addition to Tesla, technology giant Apple, which plans to launch electric vehicles in 2024, also announced with great fanfare that it will use lithium iron phosphate batteries, saying that this is for safety reasons.
Domestic enterprises are more accepting of lithium iron phosphate batteries. According to statistics, even in the field of new energy passenger vehicles, the penetration rate of domestic lithium iron phosphate batteries has reached 30%, and all models will Not to mention BYD, which is equipped with blade batteries, car companies such as Xiaopeng and Weilai have also used or will soon use lithium iron phosphate batteries.
Summary
Lithium iron phosphate batteries are being used on a larger scale with their advantages of safer, lower cost and longer life.
LG New Energy has already deployed lithium iron phosphate batteries. In the future, we do not rule out the possibility that overseas battery giants such as Panasonic, Samsung SDI, and SKI will also deploy lithium iron phosphate batteries!