LG Energy Solution (LGES) is all-in on prismatic battery cell production. LGES and other South Korean battery suppliers have noticed a significant increase in automakers’ demand for prismatic battery cells.
LG Energy Solution formed a task force to develop prismatic battery cells and is actively talking to customers about its new offering. Once the company starts producing prismatic batteries, LGES will be the first South Korean battery supplier to offer prismatic, cylindrical, and pouch-type options.
Fellow South Korean battery suppliers Samsung SDI and SK ON are also putting more effort into producing prismatic battery cells. SK On has already developed its prismatic form factor technology. While it prepares for mass production, SK On is actively talking to clients about prismatic cell manufacturing.
Samsung SDI has been the sole domestic supplier of prismatic cells in South Korea for some time, giving it an edge against LGES and SK On. As the EV market changes, the company is preparing for increased demand for its prismatic cells.
“Prismatic batteries will gradually widen its portion in the global EV market, as is shown by growing request for collaboration from EV manufacturers,” said Samsung SDI Executive Vice President Michael Son.
As old and new automakers delve deeper into electric vehicle production, more research and thought have gone into battery technology. Over the past few years, interest in prismatic batteries has increased. In 2019, Prismatic batteries made up a 19% market share in Europe.
As of 2023, prismatic cells accounted for 49% of batteries in the European market, beating pouch-type cells, which accounted for 35% market share. In 2019, pouch-type cells dominated the European market, holding 46% market share.
Meanwhile cylindrical batteries held a 35% market share in 2019, dropping to 16% in Europe by 2023, reported SNE Research. However, interest in cylindrical batteries could rise in the next few years.
LGES and Samsung SDI are nearing the mass production of Tesla’s 4680 cell design. Samsung SDI aims to start mass production on the 46-series cylindrical battery by early 2025. LGES plans to begin 4680 cylindrical cell production in South Korea this month and expects to reach mass production by the end of 2024.
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