LG Energy Solution seals LFP battery deal for Renault EVs

Industry

Published: 02 Jul. 2024, 19:07 Updated: 04 Jul. 2024, 10:32

LG Energy Solution seals LFP battery deal for Renault EVs

Executives from Renault Group including Renault CPO Francois Provost, third from left, and LG Energy Solution Vice President Seo Won-jun, fourth from left, take a photo at the Renault headquarters in Paris, France on July 1.[LG ENERGY SOLUTION]

LG Energy Solution sealed a lithium iron phosphate (LFP) battery deal with Renault for its electric cars, marking the first major order of the cheaper battery type for a Korean manufacturer in the field.

LG Energy Solution will provide LFP batteries with a capacity of up to 39 gigawatt-hours to the French automobile company from the end of 2025 to 2030, enough to manufacture 590,000 EVs. The exact investment size has not been disclosed. The batteries will be equipped on Renault’s next-generation electric cars.

LFP batteries, using relatively affordable raw materials of iron and phosphate, are considered safer and cheaper than conventional lithium-ion batteries but also offer a shorter range. China-based battery manufacturers CATL and BYD have been the main providers of LFP batteries.

“We are building an integrated supply chain in the European market with LG Energy Solution,” François Provost, chief procurement, partnerships & public affairs officer for the Renault Group, said.

“The supply deal proves the technology, quality and price-competitiveness of LG Energy Solution at a time when Chinese battery companies are increasing their influence over the European market,” the Korean company said.

LG Energy Solution's pouch battery packs to be provided to Renault will utilize Cell-To-Pack (CTP) technology, which removes the modularization layer to reduce costs and increase the density of battery packs. [LG ENERGY SOLUTION]

The pouch battery packs to be provided to Renault will utilize Cell-To-Pack (CTP) technology, which removes the modularization layer to reduce costs and increase the density of battery packs.

LG Energy Solution announced Tuesday that it invested in the Australian lithium mining firm Liontown Resources. The deal will see Liontown supply 1.75 million tons of concentrated lithium for 15 years, starting at the end of this year. Concentrated lithium is needed to form lithium hydroxide, a key material in the production of high-density EV batteries.

The company also invested approximately 345 billion won ($248 million) in the Australian firm's convertible bond.

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]