Korean Battery Companies Jump into Mass-Production of Prismatic Batteries.
LG Energy Solution, a leading player in the battery industry, has formed a task force to develop prismatic batteries and is currently in discussions with its clients, marking a significant shift in the company’s strategic focus. This move comes as the demand for prismatic batteries in the electric vehicle (EV) market continues to rise, driven by their enhanced safety features and cost-effective production processes.
Prismatic batteries, which LG Energy Solution initially developed in the 1990s and mass-produced for small devices until the late 2010s, are now seeing a resurgence in popularity. According to market research firm SNE Research, prismatic batteries accounted for 49% of the European market last year, a substantial increase from 19% in 2019. This shift highlights the growing preference for prismatic batteries over pouch-type and cylindrical batteries, which held 35% and 16% of the market, respectively, last year.
If LG Energy Solution begins mass production of prismatic batteries, it will become the first company in the global battery industry to offer all three form factors: pouch, cylindrical, and prismatic. This diversification could provide the company with a competitive edge in the rapidly evolving EV market.
SK On, another major player in the battery industry, has also completed the development of prismatic form factor technology early last year and is preparing for mass production.
Kim Kyung-hoon, Chief Financial Officer of SK On, stated in a Q2 earnings conference call on the 1st:
The technology development for the prismatic form factor has been completed, and we are in detailed discussions with multiple clients regarding the timing of mass production.
Samsung SDI, which has been the sole domestic supplier of prismatic batteries until now, is also anticipating an increase in demand.
Michael Sohn, Head of Strategic Marketing for Medium and Large Batteries at Samsung SDI, said in a conference call on the 30th of last month:
We expect the proportion of prismatic batteries in the electric vehicle market to expand, and we are seeing an increase in cooperation requests from OEMs.
The resurgence of prismatic batteries can be attributed to several factors. Prismatic batteries are more resistant to external shocks and have better durability due to their aluminum can encasement. They also feature safety devices such as vents for releasing internal gases and fuses that cut off the circuit when a specific current flows. Additionally, prismatic batteries are optimized for preventing heat propagation due to their wide base, which allows greater contact with the lower cooling plate.
Despite being relatively heavier and having lower energy density compared to pouch-type and cylindrical batteries, prismatic batteries have simpler processes and lower production costs, making them favorable for mass production. They can also be directly mounted without additional safety devices, making them advantageous for cell-to-pack (CTP) applications in pack design.
The increasing adoption of prismatic batteries by major automakers further underscores their growing importance. German automaker Volkswagen plans to adopt prismatic batteries in 80% of the electric vehicles it produces by 2030, highlighting the strategic shift towards this battery form factor.
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Korean Battery Companies Jump into Mass-Production of Prismatic Batteries. source
