CHUNGCHEONGBUK-DO < invest Korea

LG Energy Solution Ltd.’s Ochang Energy Plant in Cheongju, North Chungcheong Province. [Courtesy of LGES]

According to Pulse by Maeil Business News Korea,

LG Energy Solution Ltd. (LGES), a pure-play vehicle battery maker under South Korea’s LG Group, will build a production base for semi-solid-state batteries at its Ochang Energy Plant in Cheongju, North Chungcheong Province, which is an intermediate step before moving to the ultimate goal of solid-state batteries. Given that its two domestic rivals, Samsung SDI Co. and SK on Co., are intent on drawing up a technology roadmap to go straight to solid-state batteries, it remains to be seen which path will be more effective.

According to battery industry sources on Tuesday, LGES plans to build a production line for semi-solid-state batteries at the Ochang Energy Plant to replace traditional liquid electrolytes with a jelly-like new substance, with a goal for commercialization by 2026. Specific production scales and customers have yet to be disclosed, but the company appears to be flexible depending on the performance of the technology investment.

“Semi-solid-state batteries are a strategic battery to prepare for the next generation,” a senior official from LGES said. “We are building the production line at the Ochang plant to create synergy with our domestic research and development (R&D) personnel.” The company seems to be reinforcing its “mother factory” strategy, which checks core R&D and initial production in Korea and within LGES, the semi-solid production line is reportedly called the “gold line.”

“Overseas factory construction is increasing, but a mother factory strategy is essential for successful operation,” a battery industry insider said. “A stable approach is to achieve next-generation battery development and pilot production in Korea, and then transplant the successful model overseas.”

Semi-solid-state batteries have the advantage of maintaining the benefits of both liquid and solid states without significantly changing the existing processes. They can achieve a higher energy density than current liquid batteries, increase safety compared to traditional lithium-ion batteries, and achieve faster commercialization than solid-state batteries. LGES’ approach to semi-solid states can be seen as a practical compromise.

Meanwhile, LGES also plans to pursue a two-track strategy of developing both semi-solid-state and all-solid-state batteries, as the global race to set the technological standard for solid-state batteries, often referred to as the “dream battery,” is intensifying. Samsung SDI, one of the fastest movers in the field, has built a pilot production facility for solid-state batteries at its plant in Cheonan, South Chungcheong Province, while SK on is building a solid-state pilot production facility at its battery research center in Daejeon, South Chungcheong Province.

Korean battery companies are eager to secure technological prowess to overtake China in the next-generation battery market as they have a history of underestimating the potential of lithium iron phosphate (LFP) batteries and letting China lead the way. “While strengthening the competitiveness of existing lithium-ion batteries, we need to accelerate the development of next-generation batteries and new materials,” POSCO Research Institute senior researcher Park Jae-beom said. “But first and foremost, establishing a domestic hub for pilot production is important.”

By Song Min-geun and Yoon Yeon-hae

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (October 4, 2023)