The competition in battery technology is tougher than ever, and LG ENERGY SOLUTION seems to have the edge. While numerous companies, including Tesla, Samsung and Volkswagen, are working intensively on cost-cutting battery manufacturing processes, LG has now announced a significant advance.
LG's foray into dry coating technology
LG ENERGY SOLUTION has announced plans to commercialize a breakthrough dry coating technology by 2028 that could significantly reduce battery manufacturing costs. This technology, which has been in development for over a decade, could make the South Korean manufacturer significantly more competitive against its Chinese rivals. According to Je-Young Kim, CTO of LG ENERGY SOLUTION, the dry coating technology could reduce production costs by 17 to 30 percent.
Pilot production to start in 2024
LG plans to launch a pilot production line for the dry coating process in the fourth quarter of 2024. Series production is then scheduled to begin in 2028. This marks the first time that LG has announced a concrete timeline for the commercialization of this technology.
Challenges for Tesla
Tesla has also invested considerable effort in the development of dry coating technology, but so far without the hoped-for breakthrough. While Tesla has managed to apply the process to the anode parts of the battery, implementation on the cathode parts remains a challenge. LG, however, claims that their process can be applied to both anodes and cathodes, regardless of the size of the cathode particles.
Market share and competition
LG's market share in the electric vehicle battery sector has fallen to 12.6 percent this year, down from 14.6 percent last year. This is largely due to the expansion of Chinese competitors such as Contemporary Amperex Technology and BYD. However, the development of dry coating technology could bring LG back into a leading position.
Conclusion
The coming years will be decisive for the competition in battery technology. LG ENERGY SOLUTION has taken an important step with its dry coating technology, which gives them a clear advantage over the competition. Tesla and other competitors. It remains to be seen how further developments will proceed and whether Tesla and other competitors can make similar progress.
