Preempts Next-generation Battery Market
LG Energy Solutions has preempted the next-generation battery market as it will supply its nickel, cobalt, manganese and aluminum (NCMA) batteries for U.S. GM and Tesla electric vehicles.
LG Energy Solutions is planning to roll out NCMA batteries starting from the second half of 2021. The portion of nickel will be 89 to 90 percent with cobalt accounting for less than 5 percent. The new battery can empower an electric vehicle to run more than 600 kilometers on a single charge.
NCMA batteries are a combination of NCM batteries and aluminum. Recently, battery manufacturers are focusing on “high-nickel” to extend electric vehicles’ driving distances. The higher the nickel content, the higher the battery’s energy density and capacity. The problem is stability. Aluminum is a big part of the solution. Aluminum boosts output and lowers chemical instability.
LG Energy Solutions established Ultium Cells, a battery joint venture with GM, in December 2019. Ultium Cells is building a battery plant in Rose Town, Ohio, which will mass-produce NCMA batteries for GM electric vehicles. Tesla also chose NCMA batteries for its next generation vehicles.
Ultium Cells originally planned to commercialize NCMA batteries in 2022. However, Tesla's choice to use Ultium Cells products prompted Ultium Cells to advance the schedule to the second half of 2021.
LG Energy Solution is also discussing NCMA batteries with other corporate customers. Although NCM batteries are still the main stream, the company is planning to gradually change its NCM battery production lines into those for production of NCMA batteries. Starting in 2022, NCMA battery shipments will grow rapidly, analysts predicted.
"GM is expected to load pickup trucks with NCMA batteries and Tesla the sports utility (SUV) Model Y," said an official of the battery industry. "Samsung SDI and Panasonic are preparing to produce NCA batteries. Production of batteries containing aluminum will increase."