L&F plans NMC cathodes with 95 per cent nickel content
It will be supplied “to Korean battery cell makers and US electric vehicle makers next month.” L&F’s most important customers include Tesla and the three largest battery manufacturers in South Korea – LG Energy Solution, SK On and Samsung SDI. It remains to be seen which customers these companies will supply with battery cells that utilise the new cathode material. However, it has been confirmed that cathode materials with a nickel content of over 90% have already been supplied to General Motors (or the battery joint venture Ultium Cells) via a partnership with LGES.
Many current electric cars use so-called NMC811 batteries, where nickel, manganese and cobalt are added to the lithium at a ratio of 8:1:1 in the cathode. 90 or even 95 per cent is thus a noticeable increase. Unspecified industry representatives told KED Global that increasing the nickel content by one percentage point increases the range of an electric car by around ten kilometres. According to this logic, the jump from around 80 per cent in an NMC811 battery to 95 per cent could increase the range by 150 kilometres.
However, nickel is one of the more expensive battery materials. If more nickel is used in a cell, the cost will also increase. However, battery cells with a high nickel content (and therefore a high energy density) are particularly in demand in more expensive premium electric cars, where a long range is required and manufacturers can demand a higher price.
L&F targets this market with its strategy. While Chinese cathode material manufacturers increasingly focus on lithium iron phosphate cathodes to tap into the more price-conscious volume market, the Koreans are trying to score points with nickel-rich NMC materials. In addition to L&F, EcoPro BM is also relevant in South Korea – the competitor is reportedly on the verge of mass-producing cathode materials with a nickel content of 94 per cent. LG Chem, the parent company of LGES and a manufacturer of cathode materials itself, focuses on batteries with a nickel content of 40 to 60 per cent – these have a lower energy density but are cheaper.
Analysts consider the focus of L&F and EcoPro BM on high-nickel batteries to be an opportunity, as well as a major risk. Suppose the uptake of electric cars continues to slow down, and the breakthrough of autonomous driving is also delayed. In that case, L&F and EcoPro BM would “face significant challenges in their business directions.” Nickel-containing cathode materials could be particularly interesting for autonomous electric cars, as such vehicles with all their sensors and computers are considered potential “power guzzlers.” For cost and durability reasons, some experts also favour LFP batteries for use in robotaxis.
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