SEOUL, South Korea, July 2, 2024 /PRNewswire/ -- LG Energy Solution (KRX: 373220) today announced that it will supply LFP pouch-type EV batteries to Ampere, the EV pure player born from Renault Group, its long-time customer.
The two companies signed the supply agreement at Renault's Paris headquarters in France on July 1, with the attendance of Wonjoon Suh, Executive Vice President and head of Advanced Automotive Battery Division at LG Energy Solution; Seungdon Choi, Executive Vice President and head of Advanced Automotive Battery Development Center at LG Energy Solution; François Provost, Chief Procurement, Partnerships and Public Affairs Officer at Renault Group; Gilles Le Borgne, Chief Technology Officer at Renault Group; Josep Maria Recasens, Chief Strategy officer at Renault Group and Chief Operating Officer at Ampere; and Philippe Brunet, SVP of Powertrain and EV Engineering at Ampere.
Under the five-year contract, LG Energy Solution will provide LFP batteries to Ampere from late 2025 through 2030, with a total capacity of approximately 39GWh, enough amount to produce around 590,000 battery electric vehicles.
The batteries will be manufactured in LG Energy Solution's Poland facility, and will power next-generation EV models from Ampere.
"We will provide the best customer value to Ampere through our overwhelming technological prowess and quality competitiveness," said Wonjoon Suh, Executive Vice President and head of Advanced Automotive Battery Division at LG Energy Solution.
"We worked hand in hand with LG Energy Solution to set up an integrated value chain in Europe. Our long-term relationships have enabled us to build this unique solution in terms of technology and competitiveness," said François Provost, Chief Procurement, Partnerships and Public Affairs Officer, Renault Group.
It's the company's first large-scale supply deal of LFP EV batteries whose market has been dominated by non-Korean manufacturers. The deal also bears significance particularly in Europe which is one of the three largest markets for EVs.
LFP batteries use iron and phosphate, which are less expensive than the materials used in NCM batteries, and have a stable chemical structure, ensuring competitiveness in terms of cost and safety.
The demand for affordable entry-level EVs is growing, raising the demand for LFP batteries as well.
LG Energy Solution is delivering further price competitiveness by implementing CTP (Cell To Pack) solutions in the manufacturing process. CTP technology refers to a technology that removes the module stage and makes the cell into a pack structure right away. Compared to the general battery structure, the module-free advantage enables cost and weight reduction, while increasing space utilization.
Because of these advantages, CTP is considered a cutting-edge technology in the EV battery market, and LG Energy Solution is the first in the world to apply the technology to pouch-type batteries.
LG Energy Solution's CTP solution-applied pouch-type batteries have about five per cent higher energy density per weight compared to the prismatic CTP technology batteries, offering higher energy efficiency for EVs.
LG Energy Solution will also enhance the safety of the batteries by increasing the toughness of the battery pack and applying proven heat transfer prevention technology.
With the latest supply deal, LG Energy Solution has further expanded its product portfolio in pouch-type batteries encompassing various chemistries such as high-nickel NCMA, high-voltage mid-nickel NCM, and LFP. Such wide range of products can serve various consumer needs from premium EVs to more affordable entry-level segment vehicles.
"Through this partnership with Ampere, our unrivaled product competitiveness and differentiated customer value have been recognized once again," said David Kim, CEO of LG Energy Solution. "Starting with the European market, we will keep expanding our supply of automotive LFP batteries in earnest. Moreover, we will continue to provide the world's best customer value through our proven operational excellence and differentiated product portfolio."
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