Batteries Back
Korean battery makers which have been struggling in a battery price war with their Chinese competitors have begun to strike back. SK On succeeded in producing a prototype of lithium ferrophosphate (LFP) batteries in which China had previously taken the lead. The Korean battery maker even addressed the mileage problem of LFP batteries, which had been pointed out as their biggest drawback.
SK On is planning to showcase its LFP battery prototype at InterBattery to run at COEX in the Samseong neighborhood of Seoul from March 15 to 17. Recently, SK On succeeded in producing the LFP battery prototype at the Daejeon R&D Center. SK On has been promoting the development of LFP batteries since 2021.
SK On fixed the shortcoming of pouch-type LFP batteries – that their mileage drops sharply to 50 to 70 percent at a temperature around -20 degrees Celsius. The prototype’s mileage now stays at 70 to 80 percent. “We have solved the problem of short mileage which was pointed out as a problem of LFP batteries,” an SK On official said.
Ternary batteries which SK On has been focusing on have longer mileage but are also expensive, another disadvantage. In 2019, the company developed the world’s first NCM9 battery that increased nickel content to 90 percent and reduced the proportion of cobalt to less than 5 percent. The battery is being used in Ford’s electric pickup truck, the F-150 Lightning.
As SK On succeeded in producing the LFP battery prototype for the first time as a Korean company, it is expected that it will be possible to enter the low-priced battery market dominated by Chinese companies. The Korean battery maker plans to expand its battery market share with the two-track strategy of focusing on existing high-quality NCM9 batteries and cost-effective LFP batteries.
Last year, Chinese battery makers such as CATL and BYD widened their market share gap with Korean battery makers by selling low-priced LFP batteries. In the electric vehicle battery market in 2022, the three Korean battery companies -- LG Energy Solutions, SK On, and Samsung SDI – posted a combined market share of 23.7 percent according to SNE Research. On the other hand, most Chinese battery makers enjoyed triple-digit growth, with the combined market share of six Chinese companies in the top 10 global battery makers standing at 60.4 percent.