The company said on Sunday that it would also increase its presence in the global battery market by expanding its manufacturing facilities overseas.
A wholly-owned subsidiary of LG Chem in South Korea, the battery maker has been researching lithium-sulfur batteries in recent years, which could be widely deployed in the urban air mobility industry.
The global urban air mobility market is expected to reach 730 trillion won ($ 621 billion) by 2040. Lithium-sulfur batteries for this new type of transport will be worth around 11.2 trillion won by then. , the company said.
Last year, LG Energy Solution successfully operated an unmanned aerial vehicle equipped with a lithium-sulfur battery for 13 hours at an altitude of 12 kilometers, becoming the first South Korean company to perform such tests.
LG Energy Solution added that the company will continue the race to develop solid-state batteries, with a target for mass production by 2027 as well. Solid-state batteries, which replace liquid electrolytes with solid materials, are often described as the “dream battery” which eliminates the risk of battery fires.
The development of lithium-sulfur and solid-state batteries will be lucrative additions to the company’s existing electric vehicle battery product line, the company said.
Other next-generation battery products the company aims to add to its product portfolio include NCMA batteries – which contain 90% nickel, 5% cobalt, and the rest of manganese and aluminum – and batteries silicon anode, which have already caught the attention of global electric vehicle manufacturers.
The company began mass production of silicon-based anodes in 2019 and supplied them to Porsche’s premium electric vehicle brand, Taycan.
LG Energy Solution will begin production of NCMA batteries with increased nickel content in the second half of this year, he said.
While developing new battery products, LG Energy Solution will also increase its battery production capacity by building new manufacturing facilities.
The company said it would increase its generation capacity to 155 gigawatt hours by the end of the year, up 30% from 120 GWh last year. The company plans to increase its capacity to 260 GWh by 2023.
Earlier last month, LG Energy Solution and Hyundai Motor Group announced a joint investment of 1.1 trillion won to build an electric vehicle battery cell factory in Indonesia.
LG Energy Solution will also complete construction of the second plant in the United States to begin manufacturing battery cells for electric vehicles by 2023. LG Energy Solution and its US partner GM will jointly invest 2.6 trillion won in the project.
In addition to the partnership with GM, LG Energy Solution will obtain a total of 5,000 billion won to build another EV battery cell production plant with a capacity of 70 GWh. If completed, the company will have a combined capacity of 140 GWh in the United States alone.
When construction is complete, the LG Energy solution will have a global supply chain through a total of five overseas factories, located in Korea, the United States, China, Poland and Indonesia.
LG Energy Solution expects the company to not only benefit from reduced tariffs, trade concessions and logistics costs, but also provide better technical support and customer service in overseas markets.
By Shim Woo-hyun ([email protected])