Samsung SDI is considering using Chinese equipment to produce lithium iron phosphate batteries

According to foreign media reports, Samsung SDI, a battery manufacturer under the Samsung Group, is considering using equipment provided by Chinese suppliers to build its lithium iron phosphate (LFP) battery production line.

Korean media reported that Samsung SDI is expected to place an order for equipment within this year and start installation next year. This LFP battery production line is likely to be built at the Ulsan factory.

Previously, in August 2023, foreign media reported that Samsung SDI would build South Korea's first lithium iron phosphate battery production line at its Ulsan factory.

At the time, a Samsung SDI representative said: "It is currently uncertain whether the lithium iron phosphate batteries to be produced will be used in electric vehicles or energy storage systems (ESS). Final investment may take some time."

It is reported that lithium iron phosphate batteries use cheaper and more abundant metals as raw materials, and most importantly, the chemical components are less volatile, which makes iron phosphate batteries safer, more stable, and longer-lasting than batteries that require nickel and cobalt. , the price is also relatively cheap.

The advantages of lithium iron phosphate batteries in terms of safety, cost performance, and sustainability (not dependent on scarce metals) have been highly recognized by global car companies, including Tesla, and major energy storage systems around the world. It is used by many automakers including Tesla, Rivian, Ford and Volkswagen.

Currently, Chinese battery manufacturers dominate the global production and manufacturing of lithium iron phosphate batteries, supported by strong demand from major global automakers.