Chungju: LG Energy Solution Ltd., South Korea's top battery maker, announced plans to commence domestic production of lithium iron phosphate (LFP) batteries for energy storage systems (ESS) by 2027. This was disclosed during a meeting with the provincial government of North Chungcheong at its Ochang plant, which is located 147 kilometers south of Seoul. The discussions centered on strategies to enhance the battery ecosystem in the region.

According to Yonhap News Agency, LG Energy Solution will initiate the construction of an LFP production facility at the Ochang plant this year. The new production line will initially have a capacity of 1 gigawatt-hour (GWh), with expansion plans aligned with market demand.

LFP batteries, a type of lithium-ion battery, are recognized for their enhanced safety features and relatively low manufacturing costs compared to nickel cobalt manganese lithium-ion batteries. Presently, LG Energy Solution manufactures LFP batteries in China and the United States.

The company highlighted that LFP batteries constitute approximately 90 percent of the global ESS market, referencing a study by industry tracker SNE Research. "The production of LFP batteries for ESS at the Ochang plant will become the starting point for a bigger challenge and leap for South Korea's ESS ecosystem," stated Kim Hyung-sik, head of LG Energy Solution's ESS battery division, in a release.