![LG Energy Solution In In Negotiations With Chinese Companies To Provide Affordable EV Batteries For Europe LG Energy Solution In In Negotiations With Chinese Companies To Provide Affordable EV Batteries For Europe](https://www.ideals.news/photo/art/default/81751222-58830256.jpg?v=1721815612)
As a result of the EU imposing further tariffs on China-built electric vehicles, competition is expected to heat up. According to a senior executive, South Korea's LG Energy Solution is in negotiations with around three Chinese suppliers to develop affordable electric car batteries for Europe.
The possible collaborations between LGES and automakers highlight the increasing pressure on non-Chinese battery companies to reduce their pricing to par with their less expensive Chinese competitors, particularly at a time when the global EV market is experiencing a severe slump in demand.
This month, Renault, a French company, said that it will include lithium iron phosphate (LFP) battery technology into its ambitions for mass producing electric vehicles (EVs). To establish a supply chain in Europe, Renault partnered with LGES and its Chinese rival CATL.
The declaration came following a months-long anti-subsidy investigation by the European Commission, which resulted in a decision to apply an additional tax of up to 38% on EVs imported from China. This decision has spurred a wave of investment commitments by Chinese EV manufacturers and battery businesses in Europe.
Wonjoon Suh, head of LGES' advanced automotive battery branch, told Reuters, "We are having talks with Chinese firms who will develop LFP cathode with us and produce them for Europe," without disclosing the identities of the businesses.
In three years, he added, a cooperation of this kind should assist LGES in bringing its LFP battery production costs down to levels that are competitive with those of its Chinese competitors. "We are considering various measures, including setting up joint ventures and signing long-term supply deals," he said.
Ad revenues and cloud computing revenue for the most recent quarter exceeded expectations for Google's parent company Alphabet.
The cathode, which makes up over one-third of a battery cell's total cost, is the most costly component of an EV battery.
According to battery industry tracker SNE Research, China is the world's largest manufacturer of LFP cathode, with its main factories being Hunan Yuneng New Energy Battery Material, Shenzhen Dynanonic, and Hubei Wanrun New Energy Technology.
These days, the majority of EV batteries employ either LFP or nickel-based cathodes.
Although they need more expensive materials, nickel-based cathodes, such as those used in longer-range Tesla batteries, can store more energy.
Although LFP cathodes, which are widely used by Chinese EV manufacturers like BYD, usually do not store as much energy, they are safer and normally cost less due to the fact that they employ more readily available materials.
Under pressure from automakers trying to expand their product portfolios to more cheap models, South Korean battery businesses, who had concentrated on making nickel-based batteries, are now venturing into the production of LFP batteries, which are dominated by Chinese rivals.
According to Suh, LGES is thinking about producing LFP cathodes alongside Chinese companies in Morocco, Finland, and Indonesia for the European market.
LGES has been in discussions with automakers in Asia, Europe, and the United States for LFP battery supply agreements.
However, he said that compared to the US, Europe has a larger demand for reasonably priced EV models, with this market segment making up around half of all EV sales in the area.
According to SNE Research, the three South Korean battery manufacturers—LGES, Samsung SDI, and SK On—held a combined 50.5% market share for EV batteries in Europe during the first five months of this year, with LGES holding a 31.2% share. In Europe, Chinese battery competitors held a 47.1% market share, with CATL holding the top spot at 34.5%.
Even if the pace of EV sales is slowing down, LGES still has joint ventures with General Motors, Hyundai Motor, Stellantis, and Honda Motor for batteries. According to Suh, the partners have agreed that the installation of some equipment required for expansions may be postponed for up to two years as a result of the slowdown in demand. In Europe, he said, EV demand would rebound in around 18 months, while in the US, it would take two to three years. However, this timeline would depend in part on climate policy and other regulatory measures.
(Sourec:www.reuters.com)
The possible collaborations between LGES and automakers highlight the increasing pressure on non-Chinese battery companies to reduce their pricing to par with their less expensive Chinese competitors, particularly at a time when the global EV market is experiencing a severe slump in demand.
This month, Renault, a French company, said that it will include lithium iron phosphate (LFP) battery technology into its ambitions for mass producing electric vehicles (EVs). To establish a supply chain in Europe, Renault partnered with LGES and its Chinese rival CATL.
The declaration came following a months-long anti-subsidy investigation by the European Commission, which resulted in a decision to apply an additional tax of up to 38% on EVs imported from China. This decision has spurred a wave of investment commitments by Chinese EV manufacturers and battery businesses in Europe.
Wonjoon Suh, head of LGES' advanced automotive battery branch, told Reuters, "We are having talks with Chinese firms who will develop LFP cathode with us and produce them for Europe," without disclosing the identities of the businesses.
In three years, he added, a cooperation of this kind should assist LGES in bringing its LFP battery production costs down to levels that are competitive with those of its Chinese competitors. "We are considering various measures, including setting up joint ventures and signing long-term supply deals," he said.
Ad revenues and cloud computing revenue for the most recent quarter exceeded expectations for Google's parent company Alphabet.
The cathode, which makes up over one-third of a battery cell's total cost, is the most costly component of an EV battery.
According to battery industry tracker SNE Research, China is the world's largest manufacturer of LFP cathode, with its main factories being Hunan Yuneng New Energy Battery Material, Shenzhen Dynanonic, and Hubei Wanrun New Energy Technology.
These days, the majority of EV batteries employ either LFP or nickel-based cathodes.
Although they need more expensive materials, nickel-based cathodes, such as those used in longer-range Tesla batteries, can store more energy.
Although LFP cathodes, which are widely used by Chinese EV manufacturers like BYD, usually do not store as much energy, they are safer and normally cost less due to the fact that they employ more readily available materials.
Under pressure from automakers trying to expand their product portfolios to more cheap models, South Korean battery businesses, who had concentrated on making nickel-based batteries, are now venturing into the production of LFP batteries, which are dominated by Chinese rivals.
According to Suh, LGES is thinking about producing LFP cathodes alongside Chinese companies in Morocco, Finland, and Indonesia for the European market.
LGES has been in discussions with automakers in Asia, Europe, and the United States for LFP battery supply agreements.
However, he said that compared to the US, Europe has a larger demand for reasonably priced EV models, with this market segment making up around half of all EV sales in the area.
According to SNE Research, the three South Korean battery manufacturers—LGES, Samsung SDI, and SK On—held a combined 50.5% market share for EV batteries in Europe during the first five months of this year, with LGES holding a 31.2% share. In Europe, Chinese battery competitors held a 47.1% market share, with CATL holding the top spot at 34.5%.
Even if the pace of EV sales is slowing down, LGES still has joint ventures with General Motors, Hyundai Motor, Stellantis, and Honda Motor for batteries. According to Suh, the partners have agreed that the installation of some equipment required for expansions may be postponed for up to two years as a result of the slowdown in demand. In Europe, he said, EV demand would rebound in around 18 months, while in the US, it would take two to three years. However, this timeline would depend in part on climate policy and other regulatory measures.
(Sourec:www.reuters.com)