"South Korean battery enterprises are ramping up their efforts to expand into the rapidly growing energy storage system (ESS) battery market, which is experiencing a growth trajectory on par with the electric vehicle sector. Notably, LG Energy Solution, which was once a front-runner in the ESS market but was subsequently displaced to the fourth position due to increasing competition from Chinese counterparts, is now restructuring its operations, placing lithium iron phosphate (LFP) batteries at the core of its business strategy.
LFP batteries have become a dominant area for Chinese firms. The reason domestic companies, which have been primarily engaged in ternary batteries such as nickel-cobalt-manganese (NCM) have lost their global ranking from 1st to 3rd place, is due to the superior cost-effectiveness and safety of LFP batteries."
"While the increased weight of LFP batteries may cause a decrease in driving range for electric vehicles, this drawback is not as much of a significant concern in stationary ESS applications. To address these market dynamics, LG Energy Solution is restructuring its supply chain around LFP batteries. The company is producing ESS products using LFP batteries at its manufacturing line in Nanjing, China, and has plans to fill the void left by Chinese companies in the North American ESS market with LFP batteries."
Where do the South Korean battery manufacturers get their supply from?
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