NCMA Batteries Launching in Second Half
High Price Competitiveness Draws Auto Industry Attention
[Asia Economy Reporter Choi Dae-yeol] Tesla or GM?
Industry interest is growing over which automaker's model will first be equipped with the NCMA battery that LG Energy Solution plans to release in the second half of this year. This battery improves price competitiveness by reducing the expensive cobalt content and adding cheaper aluminum. LG Energy Solution is reportedly negotiating supply deals with both GM and Tesla.
According to industry sources on the 4th, Tesla is in talks to replace the NCM811 battery previously supplied by LG Energy Solution in the China-made Model Y with the NCMA battery. Tesla, which has mainly used batteries from its former joint venture partner Panasonic, produces and sells vehicles with batteries from LG Energy Solution or Chinese company CATL in some markets such as China.
Since news of the NCMA battery development surfaced last year, Tesla has shown interest and discussed supply possibilities with LG Energy Solution. Recent reports domestically and internationally have indicated that vehicles equipped with the new battery will be sold in China starting next month. LG Energy Solution stated regarding this, "We cannot confirm due to customer-related issues."
NCMA is named after the initials of the cathode material components directly related to battery performance (Nickel, Cobalt, Manganese, Aluminum) and is scheduled for mass production in the second half of this year. Batteries primarily using nickel have high energy density but relatively lower stability, making materials like cobalt or manganese essential. However, cobalt is about 20 times more expensive than aluminum, so reducing cobalt content directly improves price competitiveness.
NCMA batteries increase the nickel content to about 90% while reducing cobalt content to below 5%. The NCM811 battery currently supplied by LG Energy Solution to Tesla contains 80% nickel and 10% each of cobalt and manganese. The industry evaluates NCMA as superior in terms of price, lifespan, capacity, and resistance.
Increasing nickel content is a characteristic of domestic battery companies such as LG Energy Solution, Samsung SDI, and SK Innovation, contrasting with Chinese companies that use lithium iron phosphate (LFP) as the main cathode material. CATL is reportedly developing cathode materials by adding manganese to existing LFP. An industry insider said, "'Cobalt-free' is a common direction pursued by major electric vehicle and battery companies like CATL and Tesla."
Meanwhile, amid the rapid growth of the global electric vehicle battery market, demand for high-capacity batteries suitable for large vehicles such as SUVs and trucks is also increasing significantly in the U.S. Established automakers like GM and Ford, as well as electric vehicle makers like Tesla and Rivian, plan to release electric pickup trucks around next year. The NCMA battery developed by LG Energy Solution is also reported to be used in GM Cadillac's SUV Lyriq and the Hummer EV pickup truck to be launched this year.
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