A recently announced joint venture pairs Lithium Iron Phosphate materials manufacturer Süd-Chemie with Korea’s largest battery and chemical manufacturer, LG Chem to develop high-volume production of LiFePO4 materials. Through the partnership, Phostech Lithium gains a customer base and LG Chem gains access to LiFePO4 materials.
Süd-Chemie is expanding their batteries material business primarily through the new site of its Canadian subsidiary, Phostech Lithium Inc. Phostech Lithium was formerly the exclusive licensee of the original Goodenough/University of Texas/Hydro-Québec/Université de Montréal/CNRS patent portfolio for Lithium Iron Phosphate materials. The licensing of these materials is now now administered by LiFePO4+C Licensing AG, a Swiss company formed for this purpose. LG Chem joins a list of licensees including Japanese companies Sony Corporation, Sumitomo Osaka Cement Co. Ltd. and Mitsui Engineering & Shipbuilding Co. Ltd. and Taiwanese companies Tatung Fine Chemicals Co. and Advanced Lithium Electrochemistry (Cayman) Co., Ltd (ALEEES).
According to the press release, “It is the mutual objective to improve LFP by combining process technology of LG Chem and manufacturing technology of Süd-Chemie, which fosters the growth of the market for lithium-ion batteries and the use of LFP especially for applications demanding very long life.” LG Chem is targeting rapid growth in on-site energy storage, and electric and hybrid automobile drives markets. LG Chem is currently the battery supplier for GM’s Chevy Volt, based on Lithium Metal Oxide cathode technology, which has recently raised some safety concerns despite their extensive safety measures. The inclusion of inherently safer LiFePO4 materials to their offerings appears a strategically sound move by LG Chem.
