LG Energy Solution plans to begin mass-producing lithium iron phosphate (LFP) batteries for energy storage systems (ESS) in Korea in 2027.

The company said Monday it will start building new production lines at its Ochang Energy Plant in North Chungcheong by the end of this year, with full operation set for 2027. The first phase will produce 1 gigawatt-hour of batteries, with capacity rising as demand grows.

“Ochang Energy Plant serves as the ‘mother factory’ for all product development and manufacturing at LG Energy Solution,” said Kim Hyung-sik, head of the company’s ESS Battery Division, during the ceremony on Monday. “Producing LFP batteries for ESS here marks the starting point for a greater leap forward in Korea’s ESS industrial ecosystem.”

LG Energy Solution is the only non-Chinese company with an established mass production system for the LFP batteries used in ESS. It began producing LFP batteries at its Nanjing plant in China last year and added a production line at its Michigan plant in the United States in June. As of the end of the third quarter, the company had secured a cumulative order backlog approaching 120 gigawatt-hours.

LFP batteries are becoming increasingly important as more than 90 percent of the global ESS market relies on the technology. Compared to nickel-cobalt-manganese (NCM) batteries, LFP batteries offer stronger cost competitiveness and lower risks of ignition and fire.

“We expect this to advance Korea’s ESS industry by leveraging synergy among domestic technology, a Korean supply chain and participation in the public sector,” a company representative said. “By carrying out LFP battery production, assembly and testing at domestic plants, we will share mass production technology and expertise, contribute to industrial and economic development and enhance the reliability of long-duration ESS operations.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.