LG Energy Solution (LGES) announced an equity investment in Sion Power, a lithium metal battery technology startup in the United States.
Sion Power holds core lithium metal battery tech patents. Lithium metal batteries use lithium metal anodes instead of anodes made of graphite or silicon. According to LGES, Sion Power’s lithium metal battery tech can achieve higher energy efficiency compared to lithium-ion batteries currently on the market.
Unfortunately, the development of Sion Power’s lithium metal battery tech has been slow because of a few challenges, like dendrite formation. The formation of dendrites degrades battery life and stability.
“This investment is a strategic decision to solidify our leadership in the development of next-generation technologies in the battery industry,” said an LG Energy Solution spokesperson. “We aim to foster greater competitiveness and create new values by continuously investing in next-generation technologies and business areas.”
LGES is building a battery facility in Arizona, where Sion Power’s headquarters is also located. The South Korean battery supplier’s Arizona facility will produce 46-series cylindrical cells for the North American Market.
Initially, LGES planned to produce 2170 cells in Arizona with an annual capacity of 27 GWh. However, in October 2023, it announced a shift to 46-series cylindrical cells in North America.
The Asian battery supplier warned of slow revenue growth in 2024. LGES explained that global economic uncertainties might affect electric vehicle car sales and cause slow revenue growth this year.