Some South Korean manufacturers are announcing plans to produce LFP(lithium iron phosphate) batteries at reduced cost by early 2026, challenging Chinese battery giants such as CATL and BYD.
According to statements by Lee Seok-hee, CEO of SK On, in a recent interview, the company has completed development of these batteries and anticipates mass production after extensive negotiations with its customers.
LFP batteries strengthen the Asian market
The executive highlighted that the LFP battery market will experience significant growth and that those manufactured in Korea will compete strongly against those produced by Chinese companies. Because LFP batteries are about 40% cheaper than nickel cobalt manganese (NCM) batteries, solid competitive advantages where Korean manufacturers have been strongest.
However, currently, about 90% of global LFP batteries are produced by Chinese firms, with CATL and BYD leading the market. SK On unveiled during the event at Coex, its Winter Pro LFP battery, which promisesa 19% improvement in energy density during winter, a period when LFP battery efficiency traditionally decreases by up to 70% in cold climates.
Other South Korean manufacturers betting on batteries
Samsung SDI CEO Choi Yoon-ho announced similar plans to start LFP battery production. production of LFP batteries by 2026, signaling a coordinated move within the South Korean industry toward this technology.
In addition, Posco Holdings is exploring the possibility of building an LFP cathode plant with Chinese partners, seeking to accelerate its entry into the growing battery market. Kim Jun-hyung, in charge of the company’s green materials business.
Kim, who previously headed Posco Future Ma cathode manufacturer, mentioned that the Chinese company’s participation in the joint venture would be limited to 25% to comply with regulations such as the Inflation Reduction Act, underlining the relevance of cathodes as one of the four critical components in battery manufacturing, which constitute more than 40% of the unit cost.
Significant investments in the battery sector
In the same vein, Koo Dong-hwi, CEO of LS MnM, reaffirmed his company’s focus on the battery materials sector by demonstrating its proven commitment to the battery industry.
By announcing significant investments in Ulsan and Saemangeum, North Jeolla, amounting to 670 billion won (approximately US$502 million) and 1.2 trillion won respectively, marking a firm step towards innovation and leadership in the competitive global battery market.
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Source: Argus Media
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