LGES and CATL to Develop Cutting-Edge Battery Solutions with Renault’s Ampere

Recently, Renault's electric vehicle division, Ampere, revealed its intention to integrate lithium iron phosphate (LFP) technology into its large-scale EV production. This will be done in collaboration with LG Energy Solution (LGES) and CATL to build a healthy supply chain in Europe.

Facing mounting pressure to expand their range of battery technologies and compete with their typically more cost-effective Chinese rivals, Western automakers are adapting. Ampere remarked, "This decision is an effective and cutting-edge response to market volatility and technological changes." LFP batteries will be installed in several Renault and Alpine models in the coming years.

Additionally, Ampere has engaged to develop cell-to-pack battery solutions to boost the range of its EVs in collaboration with South Korea's LGES. LGES declared, recently that it had signed an accord to supply 39 gigawatt hours of LFP pouch-type batteries to 雷诺 , sufficient to power about 590,000 vehicles. These battery cells will be manufactured in Poland, marking LGES's first LFP battery supply deal for EVs.

Also, automakers are turning to diverse battery chemistries, such as LFP, to cut costs and alleviate supply chain issues related to materials like cobalt. Further, the financial terms of the LGES contract have not been disclosed, but it spans from late 2025 to December 31, 2030.

Following the statement, LGES shares rose by as much as 4.3% on 2nd July 2024 morning but later settled to a 0.4% increase as of 0011 GMT. Concurrently, South Korea's benchmark KOSPI index fell by 0.3%.