[Asia Economy Reporter Jang Hyowon] E&Plus announced on the 4th that it has signed a business partnership agreement with 'Gangbong Lithium Battery,' a subsidiary of 'Gangbong Lithium,' the world's largest lithium producer, for the electric vehicle business and LFP (Lithium Iron Phosphate) battery pack and cell business.
Gangbong Lithium is a Chinese listed company known as the world's largest lithium producer and the second largest lithium compound supplier globally. It is the only company that refines both brine lithium and mined lithium. It is recognized for its quality to the extent of supplying lithium to major global lithium battery manufacturers including Tesla, and it possesses outstanding technology in lithium battery recycling.
'Gangbong Lithium Battery,' which signed the agreement this time, is a subsidiary of Gangbong Lithium and is regarded as a comprehensive energy solutions company. It operates a 14-gigawatt-hour (GWh) scale 'lithium iron phosphate battery' production plant and recently succeeded in developing 'solid-state batteries,' showcasing electric vehicles equipped with these batteries through Dongfeng Motor in China, earning recognition for its excellent technology. It focuses on producing five main product categories including consumer batteries, electric vehicle batteries, and ESS batteries, with over 20 types of batteries supplied to the market.
The agreement primarily grants E&Plus the rights to sell batteries produced by Gangbong Lithium Battery within Korea, as well as preferential sales rights for the global market excluding Korea and China. Related technology and service responses will also be shared. Plans are underway to jointly construct a lithium battery pack factory in Korea, and considering the completion stage of the pack factory, investment in an LFP battery cell factory is also being considered.
An E&Plus official stated, "Not only in Korea but also globally, NCM (Nickel Cobalt Manganese) batteries, which were produced by major existing battery manufacturers, have lost their competitive edge due to the sharp rise in raw material prices such as nickel and cobalt. As an alternative, the demand for LFP batteries from global automakers is increasing." He added, "LFP batteries are evaluated not only for price competitiveness but also for improved efficiency due to technological advancements, and as automakers are launching mid-to-low priced electric vehicles, demand for LFP batteries is rapidly increasing."
He further emphasized, "In addition to the electric vehicle market, in the ESS market as well, adoption of LFP batteries is increasing considering price competitiveness and the explosion and fire risks associated with NCM batteries."
Joint investment is also being made in Gangbong Lithium Battery and Jiangsu FC, a Chinese electric commercial vehicle manufacturer. Through cooperation with Jiangsu FC, the company plans to enter the electric vehicle market including 'Jeepney' in the Philippines, where E&Plus has supplied fire trucks, as well as domestic electric logistics vehicles.
Meanwhile, E&Plus can secure a minimum supply volume of 5 gigawatts (5 GWh), equivalent to batteries for 100,000 electric vehicles, from Gangbong Lithium Battery. Having secured electric vehicle batteries, the company expects related business promotion to gain further momentum.
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