Korean battery materials companies are expediting the development of cathode materials for low-cost lithium iron phosphate (LFP) batteries with a market dominated by China.
According to industry sources on Sept. 3, Korean battery makers are targeting volume production of cathode materials for LFP batteries around 2026. It usually takes four years from the development of cathode materials for electric vehicle batteries to the installation of them in electric vehicles, but they are speeding up their work to shorten the period.
Ecopro BM is running an LFP team at its R&D headquarters and is aiming for mass production of cathode materials for LFP batteries in 2025. Iron is used in LFPs instead of cobalt so LFPs are cheaper and more stable, but an improvement in terms of performance such as electrical conductivity is still needed, so the company is focusing on developing new products with improved performance.
POSCO Future M has completed the development of laboratory-level samples of LFP cathode materials. It aims to produce a prototype by the end of this year. If there are any problems with its own development schedule, the company is considering establishing a joint venture with another company that has LFP technology. Already, POSCO Future M’s corporate customers have reportedly sounded out it’s supply of cathode materials for LFPs.
LG Chem is developing lithium manganese iron phosphate (LMFP) anode materials, which adds manganese to LFP cathode materials, with a target of starting volume production in 2026. In particular, LG Chem believes that it is possible to respond to the volume market by developing high-voltage mid-nickel and manganese-rich products in addition to LMFPs and is targeting their mass production in 2026 and 2027, respectively.
Korean battery makers are rushing to enter the LFP cathode material market because the electric vehicle market is expanding from premium to entry-level models. The market is growing as carmakers that emphasize price competitiveness want to install LFP batteries in entry-level models.
The U.S. Inflation Reduction Act (IRA) has also had an impact on this change. Chinese companies such as CATL and BYD have dominated the LFP battery market with low-priced LFP batteries. According to market research firm SNE Research, they control more than 95 percent of the global LFP battery market.
However, as the United States seeks to reduce its dependence on China, Korean companies are receiving increasingly more and more calls about the supply of LFP cathodes. Korean companies have no choice but to pump up their efforts to diversify their portfolios.