Battery manufacturer LG Energy Solution plans to start production of lithium iron phosphate (LFP) batteries for stationary energy storage systems (ESS) in its home country of South Korea starting in 2027. The production lines will be installed at the Ochang plant in North Chungcheong Province. According to the company, the expansion is scheduled to begin at the end of 2025. The annual production capacity will initially be one gigawatt-hour and is set to increase in response to growing market demand.
Local EES production prioritized in public tenders
LG Energy Solution already produces LFP cells in China and the United States. With the move to South Korea, the company is responding to the growing significance of domestic supply chains and political support measures that prioritize local manufacturing in public tenders for ESS.
LFP dominates global EES market
Production in Ochang is aimed exclusively at the ESS market. Compared to nickel-cobalt-manganese (NCM) batteries, LFP technology is considered more cost-effective and thermally stable, making it particularly attractive for stationary applications. According to LG Energy Solution, LFP technology dominates the global ESS market with a share of more than 90 percent.
