LG Energy and Samsung SDI join forces with General Motors to establish the first LFP battery production facilities in the United States.

In a significant shift, Korean battery suppliers are turning their attention to Lithium Iron Phosphate (LFP) technology, a move that was previously dominated by Nickel Manganese Cobalt (NMC) batteries. Companies such as POSCO, L&F Co., and EcoPro BM Co. are focusing on the development of next-generation LFP cathode materials for electric vehicles (EVs) and energy storage systems.

General Motors (GM) is leading the charge in this new direction, planning to launch sub-$30,000 EV models using LFP cells. This strategic move aims to overcome what industry insiders describe as an "EV adoption chasm". By making EVs more affordable, GM hopes to make them accessible to a broader customer base.

In fact, GM intends to equip five out of its seven EV models with LFP batteries. This strategic pivot is driven by the company's goal to make EVs more affordable and competitive in the market.

LG Energy Solution Ltd. and Samsung SDI Co. are also jumping on the bandwagon. They will install LFP battery production lines at their respective US plants co-owned with General Motors Co. LG Energy Solution will convert segments of its Ultium Cells LLC plants in Tennessee and Ohio for LFP cell manufacturing.

Samsung SDI will retrofit part of its $3.5 billion Indiana joint venture with GM for LFP production lines. This move marks the Korean battery makers' foray into LFP production.

The global EV market is no longer just about energy density; cost, supply chain resilience, and policy are just as important, according to a Korean battery executive. With LFP's lower cost and greater supply chain stability, it is seen as a potential solution to some of the challenges faced by the EV industry.

LMR batteries, seen as a technological bridge between LFP and NMC, could offer enhanced driving range while avoiding the high costs of nickel and cobalt. In a longer-term bet, LG and GM are developing lithium-manganese-rich (LMR) batteries. If the R&D proves successful, the partners plan to integrate their LMR production lines at existing US sites by 2028.

The companies are considering switching to prismatic cells, which are structurally better suited for LFP chemistry. This shift could further improve the performance and efficiency of LFP batteries.

However, the search results do not specify the individual persons who coordinate the raw material procurement and equipment balancing for Samsung SDI’s LFP battery production.

With LFP's resurgence, Korea must adapt or risk losing ground in the global battery market. L&F Co. and EcoPro BM Co., two domestic rivals of POSCO, are advancing production of "Gen 4.5" high-density LFP materials. POSCO Future M Co., a battery material specialist, has secured key technology to mass-produce LMR battery cathodes, with plans to begin full-scale production by the end of this year.

As the industry continues to evolve, it will be interesting to see how these changes impact the global battery market and the competitive landscape in Korea.

LG Energy and Samsung SDI join forces with General Motors to establish the first LFP battery production facilities in the United States.