LG New Energy aims to commercialize dry coating battery technology by 2028. This will be a game-changing battery production technology that the company hopes will enhance competitiveness.
Kim Je-Young, who became the Chief Technology Officer of LG Energy last December, announced that LG Energy plans to complete the trial production line of dry coating technology in the fourth quarter of this year and begin mass production in 2028. This is the first time LG Energy has disclosed the commercialization schedule for this technology. Kim Je-Young estimates that dry coating technology can reduce battery production costs by 17%-30%. With dry coating technology, battery manufacturers can save energy, equipment costs, and space without the need to invest in drying ovens or solvent recovery systems. PowerCo, a battery company under Volkswagen, is also trying to develop dry coating technology, calling it a “game changer” that can reduce the company’s energy consumption by 30% and space occupancy by 50%. Batteries mainly consist of three components: two electrodes and an electrolyte that helps transfer charges between the two electrodes. The production materials of these components determine the energy storage capacity and cost of the battery. Kim Je-Young stated that the dry electrode production process being developed by LG Energy can be applied to both cathodes and anodes, regardless of the size of the cathode particles. However, he added that applying the dry electrode production process to cathodes with smaller particles is very challenging.
LG New Energy is betting on breakthrough innovation technologies such as dry coating to enhance its competitiveness with Chinese battery manufacturers. LG New Energy’s market share in the electric vehicle battery market has dropped to 12.6% so far, down from 14.6% a year ago, largely due to the expansion of Chinese companies like CATL and BYD. Bloomberg New Energy Finance data shows that as of April this year, the average price of lithium iron phosphate batteries in China has plummeted by 44% to $53 per kilowatt-hour. Currently, companies like Tesla and Samsung SDI are researching dry coating technology to replace the high-energy wet process used in the production of key components of electric vehicle batteries, cathodes, and anodes. As the demand for electric vehicles cools down, the search for more affordable and environmentally friendly battery production methods becomes increasingly urgent. According to a report released by SNE Research in April, companies such as Panasonic, CATL, EVE Energy, and Honeycomb Energy Technology are also developing dry coating electrode technology, in addition to Tesla, for application in high-energy density 4680 batteries.