Alternative Battery Materials for Electric Vehicles
Korean materials companies are considering launching research about LFP cathode materials, but this is the first time they have officially announced that.
EcoPro BM and POSCO Future M started developing LFP cathode materials in earnest from the second quarter of this year, according to their semi-annual disclosure reports on Aug. 21. LFP are known to be about 15 times cheaper per kilogram than nickel, cobalt, manganese and aluminum for ternary cathode materials that Korean battery companies are focusing on. Battery industry insiders currently understand that more than 95 percent of LFP batteries using LFP cathode materials in the world were produced in China.
Specifically, EcoPro BM will develop high-performance materials for LFP and POSCO Future M LFP cathode materials. On top of that, POSCO Future M will also develop lithium manganese iron phosphate (LFMP) cathode materials with higher energy capacity by adding manganese to LFP cathode materials. Another cathode material company, L&F, has also been developing LFP and LFMP cathode materials since the fourth quarter of 2022.
The reason why battery materials companies are rushing to develop LFP cathode materials is that the market for electric vehicles is expected to become larger in the future.
In fact, many automakers have recently increased the number of models powered by LFP batteries. Last month, U.S. carmaker Tesla launched its Model Y rear-wheel drive (RWD) mid-size sports utility vehicle (SUV) using LFP batteries from CATL of China in Korea, lowering the model’s price by about 20 million won. Korean carmaker Kia Corp. will also use LFP batteries for the first time in its light electric vehicle Model Ray which it will launch in September. Industry insiders believe that Hyundai Motor’s Casper, another light electric vehicle, will also be loaded with LFP batteries next year.
However, as materials companies are still in their early stages of developing LFP cathode materials, their mass production is expected to take some time.