Korea Completes the 'Homework' China Fears: "Now, Affordable High-Quality Batteries Are Also Korean" [Korean-Style Low-Cost Battery Is Coming]

Domestic Battery Materials Firms Achieve Mass Production After Over a Decade of Research
OEMs Expected to Select Cathode Materials as Early as Next Year
"Korea Can Compete Against China’s LFP Batteries"
Ministry of Industry to Announce Hund

The mass production of a "Korean-style low-cost battery" to compete with China's inexpensive LFP (lithium iron phosphate) batteries is imminent. Expectations for the commercialization of LMR (lithium manganese-rich) batteries are rising as reports indicate that American automakers are completing tests on domestically produced cathode materials utilizing manganese. LMR batteries are the result of over a decade of research and development (R&D), supported by government initiatives and collaboration within the battery industry. After losing out in price competitiveness with NCM (nickel cobalt manganese) batteries, domestic battery manufacturers are now in the spotlight for potentially regaining global market share through LMR technology.

According to the battery industry on November 14, domestic materials companies such as POSCO Future M, Ecopro BM, and LG Chem have been producing more than one ton of LMR cathode material samples each quarter since the beginning of this year, supplying them to General Motors (GM) and Ford in the United States, and have now entered the final evaluation stage. Representatives from GM and Ford have even visited domestic production facilities to conduct technical verification. As the electric vehicle market slows down, American automakers are prioritizing cost reduction and demand recovery. There is a growing need for affordable, high-performance batteries produced outside of China.

A senior executive at a battery materials company stated, "We succeeded in mass production under the conditions set by the original equipment manufacturers (OEMs)," adding, "The selection of LMR cathode materials by OEMs could be finalized as early as the beginning of next year."

Previously, American OEMs began seeking affordable, high-performance alternatives to China's LFP batteries due to the "One Big Beautiful Bill" policy under the Donald Trump administration, which imposed restrictions on prohibited foreign entities (PFEs) and high tariffs on Chinese products. Ultium Cells, a joint venture between GM and LG Energy Solution, has announced plans to commercially mass-produce LMR-based prismatic battery cells in the United States by 2028. Ford has also stated its intention to mass-produce LMR batteries by 2030.

High-manganese batteries, which are next-generation cells based on lithium and manganese, have consistently attracted attention for their ability to combine the strengths of existing high-nickel and LFP batteries. The key is to reduce the use of expensive nickel and cobalt in NCM batteries while significantly increasing the proportion of affordable and supply-stable manganese. In particular, the high lithium recovery rate makes these batteries advantageous in terms of recycling economics. However, their relatively slow charging speed and shorter lifespan have long been recognized as challenges, prompting ongoing technological development to overcome these weaknesses.

An industry insider commented, "What started as academic research 10 to 15 years ago has finally come to fruition. Just three years ago, the mood was one of giving up, but after countless experiments by researchers, we were able to secure mass production technology."

LMR, a representative cathode material for high-manganese batteries, is attracting attention as a next-generation low-cost battery candidate that can replace LFP batteries by increasing energy density while maintaining stability. According to the industry, using LMR cathode materials can achieve approximately 33% higher energy density than LFP, enabling larger capacity. Additionally, the market price for LFP batteries is $60-80 per kWh, while LMR is around $80-90 per kWh, showing little difference.

Until now, the domestic battery industry has focused on high-performance high-nickel R&D, but as global demand for China's low-cost LFP batteries surged, companies belatedly began investing in LFP. In this context, mid-manganese and high-manganese batteries, which have increased the manganese ratio from the previous 10% to over 45%, have emerged as alternatives. Furthermore, since lithium carbonate, which is cheaper than lithium hydroxide, can be used as a lithium source, it is advantageous for reducing battery production costs.

China already has large-scale LFP production lines in place and is competing in the low-cost product segment with LFP. In contrast, Korea has many facilities for producing ternary batteries, and LMR cathode batteries can utilize these existing lines, creating a more favorable environment for LMR production compared to China. L&F, which is establishing new LFP lines, has announced plans to invest a total of 338.2 billion won to secure an annual production capacity of 60,000 tons by the second half of next year.

An industry official explained, "To produce LFP cathode materials, new production lines must be built, but LMR cathode materials can use the same processes as ternary batteries like NCM, including calcination, doping, coating, cathode material grinding, oxygen and nitrogen injection timing, and temperature. Every aspect is identical to ternary battery production."

Photo of LMR battery jointly developed by GM, LG Energy Solution, and Samsung SDI. Photo by GM

The government has also begun to support R&D. The Ministry of Trade, Industry and Energy is preparing a new national project for high-manganese cathode R&D, with a budget of several tens of billions of won to be allocated next year. According to the ministry's 2026 budget proposal, 5 billion won has been newly allocated for the "development of core materials and cell manufacturing technology for high-manganese lithium-ion secondary batteries." A ministry official explained, "The government is playing a priming role so that low-cost batteries that can compete with LFP batteries can continue to be developed," adding, "Starting with 5 billion won next year, we will strive to secure an annual budget commensurate with the scale of the project."

Park Jaebum, Senior Researcher at POSCO Research Institute, said, "As the LFP market grows, domestic companies have also begun development, but it is true that we are late compared to China. However, LMR is a field where our companies can fully leverage their existing ternary battery production lines to compete with China." He added, "In the future, there will be growing demand for affordable, high-performance batteries not only for electric vehicles but also for robots and drones. Now is the time for proactive investment and support in LMR battery development."

The mass production of cathode materials does not immediately translate to the birth of electric vehicle batteries. However, since cathode development is a core part of new battery chemistry, the subsequent cell completion process is relatively straightforward, according to the industry. One official stated, "If the cathode material is well developed, there should be no major issues in developing the anode, electrolyte, or completing the cell."