South Korean battery manufacturer SK On is planning to produce a new, lithium-iron-phosphate (LFP) electric vehicle (EV) battery by 2025, a senior executive of the company said.
The move is part of the company’s effort to deliver lower-cost batteries to automakers as rising EV costs squeeze demand. LFP batteries can be produced at lower cost, but deliver less range than comparable nickel-cobalt EV batteries.
“We’re going to produce an LFP product by 2025“, Jason Lee, executive vice president and head of SK On’s battery marketing division, said on the sidelines of the CES conference in Las Vegas. SK On is a subsidiary of South Korean energy group SK Innovation.
SK On customer Ford said last year it plans to offer Chinese-made lithium iron batteries from CATL in its Ford F-150 Lightning electric truck next year. Tesla and EV startup Rivian also have announced plans to use LFP batteries.
The cost advantage from lithium-iron chemistry depends on where the batteries are made, Lee said. LFP batteries made in China can cost 20% lower than nickel cobalt batteries, while those produced in Europe can cost 15% less, he said.