LG Power Resolution’s (LGES) power storage methods for energy grids in California / Courtesy of LGES
An upcoming choice of firms to provide batteries for a government-led power storage system (ESS) procurement mission has drawn consideration to lithium iron phosphate (LFP) batteries.
The main focus primarily stems from the federal government’s choice to prioritize security within the 1 trillion received ($678 million) mission, in contrast to the earlier bid the place value was the primary issue.
In contrast with ternary batteries made from nickel, cobalt and manganese, or nickel, cobalt and aluminum, LFP batteries are much less vulnerable to fires and explosions due to their secure chemistry. Their longer lifespan has additionally made them more and more standard in ESS initiatives, whereas ternary batteries proceed to energy electrical autos (EVs) that require fast acceleration.
In line with business officers Monday, each LG Power Resolution (LGES) and SK On provided to provide LFP batteries within the newest bid. Samsung SDI as soon as once more participated with its ternary batteries.
Within the earlier 1 trillion received ESS procurement mission, Samsung SDI secured six of eight battery provide offers utilizing its ternary batteries. LGES was awarded two contracts, whereas SK On didn’t win any orders.
On the time, the federal government reportedly favored Samsung SDI for its plan to provide a lot of the ESS batteries at its Ulsan plant. LGES was stated to rely primarily on batteries made at its Nanjing plant in China.
Final month, nonetheless, LGES introduced it might produce LFP batteries at its manufacturing unit in Cheongju, North Chungcheong Province. SK On additionally reportedly determined to repurpose its EV battery plant in Seosan, South Chungcheong Province, to provide LFP batteries for ESS use.
“As a result of just a few home companies can produce LFP batteries and handle battery methods, having a dependable provide chain and confirmed ESS expertise are anticipated to be key elements on this tender,” a battery business official stated.
Given LGES’ sturdy observe report in ESS bids, some business watchers anticipate Samsung SDI to face harder competitors this time.
Since forming a staff for home energy grid providers in 2013, LGES has supplied ESS battery methods at eight branches nationwide. The corporate additionally received Korea Electrical Energy Corp.’s ESS mission in 2022 and a separate ESS mission on Jeju Island in 2023.
The battery maker has additionally strengthened its ESS enterprise division to capitalize available on the market’s progress potential.
