LG Energy Solution eyes bigger share of ESS orders with LFP batteries

An upcoming selection of companies to supply batteries for a government-led energy storage system (ESS) procurement project has drawn attention to lithium iron phosphate (LFP) batteries. The focus mainly stems from the government’s decision to prioritize safety in the 1 trillion won ($678 million) project, unlike the previous bid where price was the main factor. Compared with ternary batteries made of nickel, cobalt and manganese, or nickel, cobalt and aluminum, LFP batteries are less prone to fires and explosions because of their stable chemistry. Their longer lifespan has also made them increasingly popular in ESS projects, while ternary batteries continue to power electric vehicles (EVs) that require rapid acceleration. According to industry officials Monday, both LG Energy Solution (LGES) and SK On offered to supply LFP batteries in the latest bid. Samsung SDI once again participated with its ternary batteries. In the previous 1 trillion won ESS procurement project, Samsung SDI secured six of eight battery supply deals using its ternary batteries. LGES was awarded two contracts, wh