South Korea's SK On plans to produce a new, lithium-iron-phosphate electric vehicle battery by 2025 as part of an effort to deliver lower-cost batteries to automakers squeezed by rising EV costs, a senior executive of the company said on Thursday.
Chinese battery makers dominate world LFP production, supported by strong demand from home-market automakers. LFP batteries can be produced at lower cost, but deliver less range than comparable nickel-cobalt EV batteries.
The cost advantage from lithium-iron chemistry depends on where the batteries are made, Lee said. LFP batteries made in China can have a 20% cost advantage over nickel cobalt batteries. LFP batteries produced in Europe can cost 15% less, he said."If you produce in the United States, there is no benefit," he said.
SK On is investing in new U.S. battery plants and by 2026 expects to have 150 gigawatt-hours of capacity. Lee said those investments, as well as investments in U.S. production of cathodes should allow SK On's U.S. customers to meet domestic content requirements attached to U.S. EV subsidies. Battery makers and automakers are expanding EV battery capacity globally, and some industry analysts have questioned whether that could result in oversupply. Lee said he does not expect oversupply in the near future. SK On's new factories have been built with guarantees from automakers that they will take the batteries, he said.
Raising the capital required to fund investments in capacity and new chemistries is one of SK On's main challenges, Lee said.Reporting by Joe White in Las Vegas and Heekyong Yang in Seoul; Editing by Muralikumar Anantharaman
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BMW i Vision Dee concept teases Neue Klasse's digital techBMW has revealed next-gen digital features pegged for its Neue Klasse range arriving from 2025.
Read more »
Sony And Honda Name Their New EV Car Brand Afeela, Show PrototypeSony And Honda Name Their New EV Car Brand Afeela, Show Prototype via insideevs.com
Read more »
Democratic Sen. Debbie Stabenow Will Not Run Again in 2024The first woman to be elected to the Senate from Michigan, Stabenow has held her office since 2001 and says she plans to spend the final two years of her term working to “improve the lives of Michiganders.”
Read more »
Sony and Honda's EV Company Is Called AfeelaThe handsome sedan will be available for order in 2025, with deliveries in 2026.
Read more »
Sony and Honda reveal their new EV car brand, AfeelaCar buyers can pre-order the new high-tech electric vehicle beginning in 2025.
Read more »
BMW iVision Dee concept previews new all-electric 3-Series | EvoThe BMW iVision Dee concept showcases new design and tech set to debut on the upcoming all-electric 3-series -
Read more »