LG Energy Solution is set to produce LFP (Lithium Iron Phosphate) batteries for ESS (Energy Storage Systems) in South Korea for the first time. On the 17th, LG Energy Solution held a ‘Domestic Production Promotion Ceremony for ESS LFP Batteries’ at the Ochang Energy Plant in collaboration with Chungcheongbuk-do, discussing production plans and strengthening domestic supply chains.
The company aims to begin establishing production lines by the end of this year and to start full operation by 2027. The initial production scale is set at 1GWh, with plans for gradual expansion based on market demand. Additionally, the company intends to collaborate on restructuring the supply chain for materials, components, and equipment to focus on domestic sources.
The establishment of this production system is expected to become a significant stepping stone for the advancement of the domestic ESS industry, according to Chungcheongbuk-do. Lee Bok-won, Deputy Governor of Chungcheongbuk-do’s Economic Office, stated that producing LFP batteries for ESS at the Ochang Energy Plant for the first time in South Korea marks a turning point in leading the country’s ESS industry development. It is anticipated to serve as a foundation for enhancing both domestic and international competitiveness and for Chungcheongbuk-do to become a hub for the secondary battery industry.
Kim Hyung-sik, Senior Vice President of LG Energy Solution’s ESS Battery Business Division, emphasized that the Ochang Energy Plant will serve as a mother factory, acting as a hub for product development and manufacturing. He stated that this production marks the starting point for expanding the ecosystem of the domestic ESS industry.
LG Energy Solution is currently the only non-Chinese company to mass-produce ESS LFP batteries. It began production at the Nanjing plant in China in 2024 and commenced production at the Michigan plant in the U.S. in June this year. Based on cumulative mass production experience, the company has expanded its orders for LFP-based ESS projects, securing an order backlog of approximately 120GWh as of the end of the third quarter.
The company plans to apply this experience and technology to the Ochang Energy Plant to contribute to creating the domestic ESS industry ecosystem. Considering the current shortage of domestic mass production systems for some key items like LFP materials, LG Energy Solution also plans to expand technological collaboration with Chungcheongbuk-do and domestic suppliers, as well as to establish a phased supply chain.
In the global ESS market, LFP batteries have become mainstream. According to the market research firm SNE Research, over 90% of the global ESS market is built on LFP batteries, and this increase is expected to continue.
LG Energy Solution’s LFP batteries meet the UL9540A standard and have demonstrated structural safety in large-scale fire mock tests. Even in thermal runaway situations, only smoke was observed without flame, and there was no spread to adjacent modules. The risk of harmful gas emissions and explosion pressure was also evaluated to be limited. LG Energy Solution explained that these achievements result from the quality of its LFP cells combined with its self-developed BMS (Battery Management System) and module and pack design technologies.
The company plans to simultaneously expand global project orders and establish a stable production system to enhance business competitiveness in the ESS sector and expand domestic production infrastructure.