From 'Leftover Rice' Status to 'Crown Prince' of the Electric Vehicle Market... Korea's Cylindrical Battery Golden Era [Bojo, Battery]

LG Energy Solution 46mm Battery
Mass Production in Ochang Starting August This Year
Samsung SDI and SK On Also Plan Development and Production Focused on North America

Editor's Note'Bojo, Battery' is a series that takes a closer look at the battery industry, which has emerged as the center of next-generation advanced industries. It examines the agile movements, strategies, and conflicts among governments and companies worldwide vying to dominate the battery manufacturing ecosystem. We will also cover the technological competition to create safer and longer-lasting batteries. We aim to serve as an 'assistant' to readers and investors by enhancing and supporting their understanding of the battery industry. We will share battery stories that are easy to approach.

The '46-pie (46mm diameter)' cylindrical battery will begin domestic mass production this year. Starting with Tesla, automakers such as GM, BMW, and Mercedes-Benz are eagerly adopting cylindrical batteries. The cylindrical battery form factor, once considered a 'gye-reuk' (an unnecessary burden) in the electric vehicle battery era, is now gaining attention as the 'crown prince' of the battery industry.

Korea's Top 3 Battery Companies and Japan's Panasonic Compete to Mass-Produce Cylindrical Batteries in North America

According to the battery industry on the 27th, LG Energy Solution will mass-produce 4680 (46mm diameter, 80mm length) cylindrical batteries at the Cheongju Ochang Energy Plant in Chungbuk this August. The production capacity of this line is about 9GWh per year. LG Energy Solution also plans to mass-produce cylindrical batteries at a standalone plant in Arizona, USA, in the second half of next year. The Arizona plant is known to have a production capacity of 36GWh. One GWh of battery capacity can supply batteries for about 12,000 electric vehicles.

Samsung SDI plans to mass-produce cylindrical batteries in early 2025 at a joint plant with GM in the United States. At a recent shareholders' meeting, Samsung SDI President Choi Yoon-ho stated, "(The joint plant with GM) is preparing to mass-produce both prismatic and cylindrical batteries simultaneously." Although Samsung SDI did not specify the exact volume specifications, the batteries to be mass-produced early next year are likely to be 46-pie cylindrical batteries.

SK On, previously known not to have plans for cylindrical battery development or mass production, revealed earlier this year that it is developing cylindrical batteries. SK On Vice Chairman Choi Jae-won explained at CES in January, "We have been developing cylindrical batteries for quite some time," adding, "Since each customer demands different specifications, we are developing all three form factors to respond accordingly."

Panasonic, which has long dominated the cylindrical battery market, is building battery plants in Kansas following its Nevada facility in the United States. It is expected to mass-produce 2170 (21mm diameter, 70mm length) batteries there, with an initial production capacity of 30GWh targeted to start operations in March next year. The company is reportedly considering an additional $4 billion (5.35 trillion KRW) investment to expand production lines at this plant. If Panasonic decides to expand, it is known to plan production of 4680 batteries.

At LG Energy Solution's Ochang plant, employees are showcasing cylindrical batteries in order from the left: 21700 and 18650. Photo by LG Energy Solution

Standardized Cylindrical Batteries Increase Production Efficiency and Safety

Cylindrical batteries are the traditional battery shape commonly used in everyday life. However, until now, electric vehicles have mainly used prismatic and pouch batteries. Cylindrical batteries have been primarily used in mobile phones and power tools due to their standardized sizes and lower manufacturing costs. Because placing multiple cylindrical batteries inevitably creates empty spaces between them, they were considered a 'gye-reuk' (unnecessary burden) in the electric vehicle battery market. To improve energy density and space utilization, prismatic and pouch batteries that can be tightly packed have been used.

With the advent of the electric vehicle era and intensified battery price competition, the advantages of cylindrical batteries are coming to the fore. Prismatic and pouch batteries vary in size and specifications depending on the brand and vehicle model. In contrast, cylindrical batteries have fixed diameters and lengths. This uniform standard is advantageous for stabilizing and optimizing large-scale manufacturing processes. Battery manufacturing yields vary due to small differences in process technology and equipment layout. Moreover, since each factory produces batteries of different shapes and specifications, it typically takes 2 to 3 years on average to reach the 'process normalization' stage with a yield rate above 90%. Cylindrical batteries reduce this time. Additionally, the produced batteries can be supplied to multiple companies rather than a single specific company.

Another advantage of cylindrical batteries is their ability to disperse risks such as power outages or fires. If a problem occurs in a prismatic or pouch battery, the entire power supply may shut down or pose a fire risk. Cylindrical batteries, being smaller and connected in parallel in larger numbers, can disperse such risks.

According to Eugene Investment & Securities, the global cylindrical battery market size is estimated to grow from about 108GWh last year to 241GWh in 2025 and 705GWh in 2030. This corresponds to an average annual growth rate of 27%, surpassing the estimated 19% average annual growth rate of the global electric vehicle market.