- LG Energy Solution to supply lithium iron phosphate (LFP)
pouch-type batteries to Ampere for five years starting from 2025,
total capacity around 39GWh
- Deal marks the company's first large-scale supply of LFP
batteries for EVs, expanding product portfolio and penetrating the
entry-level market segment
- The LFP Batteries to apply CTP (Cell To Pack) solutions,
ensuring enhanced cost competitiveness and safety
SEOUL,
South Korea, July 1, 2024
/PRNewswire/ -- LG Energy Solution (KRX: 373220) today announced that it will supply LFP
pouch-type EV batteries to Ampere, the EV pure player born from
Renault Group, its long-time customer.
The two companies signed the supply agreement at Renault's
Paris headquarters in France on July
1, with the attendance of Wonjoon
Suh, Executive Vice President and head of Advanced
Automotive Battery Division at LG Energy Solution; Seungdon Choi,
Executive Vice President and head of Advanced Automotive Battery
Development Center at LG Energy Solution; François Provost, Chief
Procurement, Partnerships and Public Affairs Officer at Renault
Group; Gilles Le Borgne, Chief
Technology Officer at Renault Group; Josep
Maria Recasens, Chief Strategy officer at Renault Group and
Chief Operating Officer at Ampere; and Philippe Brunet, SVP of Powertrain and EV
Engineering at Ampere.
Under the five-year contract, LG Energy Solution will provide
LFP batteries to Ampere from late 2025 through 2030, with a total
capacity of approximately 39GWh, enough amount to produce around
590,000 battery electric vehicles.
The batteries will be manufactured in LG Energy Solution's
Poland facility, and will power
next-generation EV models from Ampere.
"We will provide the best customer value to Ampere through our
overwhelming technological prowess and quality competitiveness,"
said Wonjoon Suh, Executive Vice
President and head of Advanced Automotive Battery Division at LG
Energy Solution.
"We worked hand in hand with LG Energy Solution to set up an
integrated value chain in Europe.
Our long-term relationships have enabled us to build this unique
solution in terms of technology and competitiveness," said François
Provost, Chief Procurement, Partnerships and Public Affairs
Officer, Renault Group.
- LG Energy Solution's LFP competitiveness acknowledged in
Europe, a fierce battlefield for
EVs
It's the company's first large-scale supply deal of LFP EV
batteries whose market has been dominated by non-Korean
manufacturers. The deal also bears significance particularly in
Europe which is one of the three
largest markets for EVs.
LFP batteries use iron and phosphate, which are less expensive
than the materials used in NCM batteries, and have a stable
chemical structure, ensuring competitiveness in terms of cost and
safety.
The demand for affordable entry-level EVs is growing, raising
the demand for LFP batteries as well.
- The world's first CTP solution-applied pouch-type batteries,
ensuring enhanced cost competitiveness and safety
LG Energy Solution is delivering further price competitiveness
by implementing CTP (Cell To Pack) solutions in the manufacturing
process. CTP technology refers to a technology that removes the
module stage and makes the cell into a pack structure right away.
Compared to the general battery structure, the module-free
advantage enables cost and weight reduction, while increasing space
utilization.
Because of these advantages, CTP is considered a cutting-edge
technology in the EV battery market, and LG Energy Solution is the
first in the world to apply the technology to pouch-type
batteries.
LG Energy Solution's CTP solution-applied pouch-type batteries
have about five per cent higher energy density per weight compared
to the prismatic CTP technology batteries, offering higher energy
efficiency for EVs.
LG Energy Solution will also enhance the safety of the batteries
by increasing the toughness of the battery pack and applying proven
heat transfer prevention technology.
- Delivering differentiated customer value through powerful
product portfolio of pouch-type batteries
With the latest supply deal, LG Energy Solution has further
expanded its product portfolio in pouch-type batteries encompassing
various chemistries such as high-nickel NCMA, high-voltage
mid-nickel NCM, and LFP. Such wide range of products can serve
various consumer needs from premium EVs to more affordable
entry-level segment vehicles.
"Through this partnership with Ampere, our unrivaled product
competitiveness and differentiated customer value have been
recognized once again," said David
Kim, CEO of LG Energy Solution. "Starting with the European
market, we will keep expanding our supply of automotive LFP
batteries in earnest. Moreover, we will continue to provide the
world's best customer value through our proven operational
excellence and differentiated product portfolio."
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SOURCE LG Energy Solution