LG Energy Solution vows safer ESS, creation of LFP ecosystem

LG Energy Solution (LGES) CEO Kim Dong-myung, right, shakes hands with Korea Electrical Safety Corp. CEO Nam Hwa-yeong at the battery maker's research facility in Daejeon, Wednesday, after signing a memorandum of understanding to strengthen the safety of energy storage systems and foster an ecosystem for lithium iron phosphate batteries in Korea. Courtesy of LGES

LG Energy Solution (LGES) said Thursday it signed a memorandum of understanding with the Korea Electrical Safety Corp. (KESCO) to strengthen the safety of energy storage systems (ESS) and foster an ecosystem for lithium iron phosphate (LFP) batteries in Korea.

Under the agreement signed Wednesday, the two sides will work together to develop safety management policies for ESS and share their data, expertise and technologies. They also plan to establish a new safety management system for facilities that will use LGES’ LFP batteries in ESS projects.

“With this agreement, we will apply the highest safety standards to ESS sites using our batteries,” LGES CEO Kim Dong-myung said. “We will do our utmost to ensure the safety and build a strong ecosystem for LFP batteries used in domestic ESS.”

Among Korea’s three major battery makers, only LGES can mass produce LFP batteries. The company is also preparing to begin local production of LFP batteries at its plant in Cheongju, North Chungcheong Province.

According to energy market tracker SNE Research, more than 90 percent of ESS worldwide use LFP batteries, which are more cost-effective and have higher thermal stability than ternary batteries, which are typically used for electric vehicles and other areas requiring higher performance.

Korea’s safety standards still focus on ternary batteries, as domestic companies have traditionally prioritized them over LFP batteries, most of which are supplied by Chinese competitors.