[Alpha Biz=(Chicago) Reporter Kim Jisun] LG Energy Solution has set up a full-fledged supply chain to expand its LFP (Lithium phosphate steel) battery business.

LG Energy Solution announced on the 22nd that it signed a long-term supply contract with Chinese anode material producer Changzhou Liyuan New Energy Technology for LFP battery cathode materials for electric vehicles and energy storage systems (ESS).

LG Energy Solution plans to receive approximately 160,000 tons of cathode materials for LFP batteries from Changzhou Liyuan New Energy Technology for five years starting this year. This is enough to produce batteries for 1 million electric vehicles capable of driving over 400 km, and the two companies plan to discuss additional supply contracts in the future depending on market conditions.

Changzhou Liyuan New Energy Technology is a company specializing in the production of cathode materials for LFP, established in Nanjing, China in 2021, with an annual production capacity of 310,000 tons. Indonesia also has a production facility capable of producing about 30,000 tons of LFP battery cathode materials, and plans to expand the capacity to 120,000 tons in the future.

Through this supply contract, LG Energy Solution will be able to speed up the expansion of competitiveness in the LFP battery market.

[ⓒ 알파경제. 무단전재-재배포 금지]