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LG, SK, Samsung eye US LFP battery production amid China's dominance
An LG Energy Solution (LGES) employee inspects production lines at the company's plant in Michigan. The plant started mass production of lithium iron phosphate batteries for energy storage systems last month. Courtesy of LGES
By Park Jae-hyuk
Korean companies shift focus from high-priced NCM batteries
Korea’s top three battery manufacturers are ramping up efforts to increase production of lithium iron phosphate (LFP) batteries in the United States, challenging China’s dominance in the global market for these lower-cost products.
Given the U.S. push to reduce reliance on Chinese goods amid trade tensions under the Donald Trump administration, LG Energy Solution (LGES), SK On and Samsung SDI have recently shifted their focus to LFP batteries — despite being highly proficient in producing advanced nickel-cobalt-manganese (NCM) batteries known for their superior energy density and performance.
LG Energy Solution's (LGES) lithium iron phosphate battery for energy storage systems / Courtesy of LGES
LGES is set to begin mass production of LFP batteries for electric vehicles (EVs) in late 2027 by upgrading the Tennessee battery cell manufacturing facility of Ultium Cells, its joint venture with General Motors. This move follows the Korean firm's start of mass production of LFP batteries for energy storage systems (ESS) at its Michigan plant last month.
According to Ultium Cells, conversion of battery cell lines at the Tennessee plant will begin later this year. The joint venture’s Ohio factory will continue producing NCM batteries for GM’s range of crossovers with more than 300 miles of range per charge.
“The upgrade reflects the continued strength of our partnership with GM and our shared commitment to advancing EV battery innovation,” LGES Executive Vice President Suh Won-joon said in a press release.
“We are bringing our extensive experience and expertise in U.S. manufacturing to the joint venture, further accelerating efforts to deliver new chemistries and form factors that meet the evolving needs of the EV market.”
Shin Young-kee, left, head of procurement at SK On, and L&F Chief Operating Officer Lee Byung-hee shake hands at SK On's head office in Seoul, Thursday, after signing a memorandum of understanding regarding L&F's supply of lithium iron phosphate (LFP) for SK On's U.S. production of LFP batteries for energy storage systems. Courtesy of SK On
SK On signed a memorandum of understanding with L&F on Thursday to source LFP from the cathode materials producer.
The battery maker plans to upgrade its U.S. production lines to supply LFP batteries for ESS. There is also speculation that the company may produce LFP batteries for EVs at U.S. plants of BlueOval SK, its joint venture with Ford Motor.
“We want to build a strong foundation for U.S.-made LFP batteries,” said Shin Young-kee, head of procurement at SK On.
Samsung SDI is reportedly preparing for U.S. production of LFP batteries for both EVs and ESS.
According to industry officials, Samsung SDI is in talks with GM about the production of LFP batteries for EVs at the Indiana plant of their joint venture. For now, the factory is scheduled to begin mass production of nickel-cobalt-aluminum (NCA) batteries in 2027.
“As uncertainty grows over China-related business under the Trump administration, Korean battery makers are seizing the opportunity,” KB Securities analyst Lee Chang-min said. “We expect demand for LFP batteries from Korean companies to keep growing, as they will remain price competitive thanks to U.S. tax credits.”