Dr. Günter von Au, Chairman of the Managing Board (CEO) of Süd-Chemie AG, Munich/Germany, and Peter Bahnsuk Kim, Vice Chairman and Chief Executive Officer (CEO) of LG Chem, Ltd., Seoul/Korea, have signed a Memorandum of Understanding (MoU) to establish a joint venture for high volume production of superior quality Lithium Iron Phosphate (LFP); LFP is a cost effective, safe and eco-friendly cathode material for use in rechargeable lithium-ion batteries. Süd-Chemie, a member of the LFP licensing alliance with several years of experience in manufacturing and marketing LFP, expects to have synergy effects by creating a joint venture with LG.
The joint venture will lay the foundation for reliable sources of LFP with regard to the rapidly growing use of lithium-ion batteries for on-site energy storage, for instance solar energy and popular smart grid applications, and for electric and hybrid automobile drives. The joint venture will predominantly provide stable supplies of LFP to LG Chem, and also provide global leading battery company as a customer to Süd-Chemie.
It is the mutual objective to improve LFP by combining process technology of LG Chem and manufacturing technology of Süd-Chemie, which fosters the growth of the market for lithium-ion batteries and the use of LFP especially for applications demanding very long life. At later stage, the joint development of other advanced olivine structure materials such as Lithium Manganese Iron Phosphate (LFMP) is also in plan. LFMP cathode materials allow for batteries with higher energy density while maintaining the advantages of LFP.
Peter Bahnsuk Kim commented on the joint venture: “This joint venture with Süd-Chemie is very meaningful to LG Chem in the way that it enables us to have strong competitiveness in the field of rapidly growing high capacity lithium-ion battery for Energy Storage System (ESS) and in vehicle applications. It is possible to manufacture high performance as well as cost effective product by combining unique technologies and manufacturing know-how of both companies.”
Dr. Günter von Au said: “This partnership is of central strategic importance to Süd-Chemie. With LG as a partner, LFP will establish itself as a storage material for large high-performance batteries. The joint venture puts us in an excellent position in the fast-growing market for battery materials.”