LG Energy Solution Targets 2028 for Revolutionary Battery Technology Launch

LG Energy Solution is looking to commercialize a breakthrough battery-making technology by the year 2028, positioning itself to better compete with Chinese rivals. This development is crucial as the demand for electric vehicles (EVs) cools and the need for cost-effective and eco-friendly battery production methods grows.

The technology in question is dry-coating, a process that replaces the traditional energy-intensive wet method used to produce cathode and anode electrodes—key components in electric car batteries. Companies such as Tesla and Samsung SDI are also exploring this technology.

“Among battery competitors, LG is the leader in dry-coating technology,” said Kim Je-Young, LG Energy Solution’s Chief Technology Officer, in an exclusive interview at the company’s headquarters in Seoul. “We started this journey 10 years ago.”

LG is planning to establish a pilot production line for its dry-coating process by the fourth quarter of this year, with full-scale production starting in 2028. This marks the first time LG has provided a timeline for the commercialization of this technology. Kim estimates that the dry method can reduce battery manufacturing costs by 17% to 30%.

Tesla, which acquired the dry-coating start-up Maxwell Technologies in 2019, has faced challenges implementing the technology for its 4680 battery cells in Austin, Texas. The traditional wet coating process involves dissolving chemicals in toxic solvents, which are then dried in lengthy and high-temperature ovens.

Dry-coating offers significant advantages: it reduces energy and equipment costs and eliminates the need for drying ovens and solvent recovery systems. Volkswagen, which is also developing dry-coating at its in-house battery company, PowerCo, has hailed the technology as a “gamechanger” for its potential to cut energy use by 30% and space requirements by 50%.

LG is betting on dry-coating innovation to regain its competitive edge against Chinese battery makers. Its market share in the EV battery sector has decreased to 12.6% this year from 14.6% last year, largely due to the rise of Chinese players like Contemporary Amperex Technology and BYD. BloombergNEF reports that the average price of lithium-iron-phosphate (LFP) batteries in China dropped by 44% to $53/kWh through April.

Batteries consist of three main components: two electrodes (an anode and a cathode) and an electrolyte. The materials used for these components determine the energy storage capacity and cost of the batteries.

Tesla promoted the dry method for electrodes during its battery day in 2020. However, the company has only managed to apply this process to the anode part of the battery, not the cathode. Experts note that manufacturing cathodes with dry processing is more challenging due to the materials involved.

LG’s dry electrode manufacturing process can be applied to both cathodes and anodes, regardless of the cathode particle size. This is particularly challenging for cathodes with smaller particles, according to Kim.

In addition to Tesla, companies like Panasonic Holdings, CATL, EVE Energy, and Svolt Energy Technology are also pursuing dry electrode technology for high energy-density 4680 cells, according to an April report from SNE Research.

“Everyone is jumping into this technology because Tesla started it,” said Park Chul-Wan, an automotive professor at Seojeong University. “All of Korea’s three battery makers are still at an early stage of the dry process.”

The push for more efficient battery-manufacturing processes presents an opportunity for equipment makers. Hanwha Momentum, a Seongnam-based unit of Hanwha Group, is studying the dry process with battery manufacturers. Massachusetts-based start-up AM Batteries has recruited veterans from Tesla’s efforts to develop equipment for its spray method of dry-coating batteries.

Meanwhile, Narae Nanotech, a Yongin-based company supplying coatings for Apple products, aims to improve the wet process by halving the coating line using xenon flash lamps rather than adopting the dry method.

“The EV industry is now in a difficult phase of crossing the chasm, and many are considering different production methods,” said Jang Dong-Won, CEO of Narae. “There’s demand for a totally different way of production to beat Chinese rivals.”