LG Energy Solution’s market share in electric vehicle (EV) batteries in China dropped last year, according to data from Gaogong Industry Institute (GGII).
Last year, 2.423 million units of EV were sold in China. The vehicles used 101.1GWh of batteries.
This is an increase of 170% and 176%, respectively, from 2020.
CATL, BYD, AVIC, LG Energy Solution and Gotion High-tech were the top five suppliers of batteries.
LG Energy Solution’s ranking dropped from third to fourth. It supplied 5.3GWh of batteries, a 10% drop from 2020.
This is because Tesla lowered the number of Model 3 and Model Y that uses NCM batteries last year. Instead, it produced more cars using lithium iron phosphate (LFP) batteries.
LG Energy Solution has started talks with Chinese lithium iron phosphate cathode companies, sources said.
As the cathode uses lithium carbonate, which is seeing a price hike, price negotiations will be a key issue, they said.
LG Energy Solution will be in talks with Dynamic, the world’s largest producer of lithium iron phosphate cathode, as well as BTR, Xiangtan Electrochemical Scientific and Guangzhou Tinci Materials.
LG Chem had signed a long-term lithium procurement contract with Tinci Lithium back in 2019.