[Alpha Biz= Reporter Kim Jisun] LG Energy Solution will supply LFP batteries for 590,000 electric vehicles to Renault, France's largest automobile manufacturer, with the contract estimated to be worth around 5 trillion KRW.
On the 1st (local time), LG Energy Solution announced the signing of a supply agreement with Renault's electric vehicle division, Ampere, at Renault's headquarters in Paris, France. The contract entails the supply of pouch-type LFP batteries for electric vehicles from the end of 2025 to 2030, spanning five years. The total supply volume is 39 GWh, which is sufficient to produce 590,000 pure electric vehicles. Considering the average price of LFP batteries in 2023, the industry estimates the contract value to be between 5 trillion and 6 trillion KRW.
This contract marks a significant milestone for LG Energy Solution as the first Korean battery company to secure a large-scale supply deal in the LFP sector, traditionally dominated by Chinese manufacturers. According to U.S. energy media outlet CleanTechnica, four out of the top five LFP battery producers for electric vehicles are Chinese. As of last year, Chinese battery manufacturers CATL and BYD held market shares of 34% and 16%, respectively.
In contrast, LG Energy Solution has primarily supplied high-capacity and high-efficiency batteries, such as high-nickel and nickel-cobalt-manganese (NCM) batteries. While their product competitiveness is strong, they have lagged behind Chinese companies in terms of price competitiveness.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
