LG Energy Solution has become the first company in the world to commercialize “NCMA (Nickel, Cobalt, Manganese, Aluminum)” battery for electric vehicles. The company’s NCMA battery is a next-generation battery that is able to provide longer range as nickel content has been raised to 90% and better stability due to an addition of aluminum. It also uses key materials that are made by South Korean companies and is expected to be supplied to Tesla. As a result, it is expected to change technologies related to electric vehicle battery and the dynamics of the materials industry for electric vehicle battery.
According to the industry on Wednesday, it is reported that LG Chem plans to supply its high-nickel NCMA batteries to Tesla in the upcoming year.
The company plans to go into mass-production of NCMA batteries in the second quarter and start supplying them to Tesla in the second half. The batteries are expected to be used for Tesla’s compact SUV model called Model Y and the company’s next-generation electric vehicles and they will be delivered mainly to the company’s factory in China.
The NCMA battery’s nickel content within its cathode material has been raised to 90% while cobalt content has been reduced to less than 5%. It is reported that the battery is able to provide a range of at least 600 kilometers with single charge due to its high nickel content. Electric vehicle batteries that are currently used are only able to provide ranges less than 500 kilometers. LG Energy Solution’s NCMA batteries have become more competitive in price as they use less cobalt, which is very expensive, and more aluminum materials that are relatively cheap.

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Although the NCMA battery has been seen as a next-generation battery for electric vehicles due to its advantages, it had been difficult for battery manufacturers to commercialize the battery due to its high technical barrier. However, a South Korean company called L&F developed NCMA cathode material with 90% nickel content that was then used by LG Energy Solution to commercialize its NCMA battery.
During “Battery Day” that was held back in September, CEO Elon Musk stated that the company would make “high-nickel battery” with high nickel content in its cathode material as the main battery for the company’s electric vehicles. LG Energy Solution and L&F are seen as companies that are most advanced in high-nickel battery development.
It is expected that there will be a rapid transition to next-generation batteries as high-nickel NCMA batteries become commercialized. It was expected that NCMA batteries would be commercialized in 2022 initially. GM and LG Energy Solution established a joint venture and decided to start mass-production of NCMA batteries called “Ultium Battery” in 2022.
However, Tesla’s decision start mounting NCMA batteries in its electric vehicles in 2021 has started battery transition and ignited competitions. It is reported that GM has also pushed forward its plan to mass-produce Ultium Batteries.
LG Energy Solution stated that it cannot disclose any information related to its customers while it is true that it plans to commercialize NCMA batteries sometime during 2021. L&F also refused to confirm any information related to its customers.
However, the industry believes that LG Energy Solution and L&F are preparing for supplies of NCMA batteries that will go to Tesla’s factory in China as both L&F and LG Energy Solution are expanding their respective plants.
Staff Reporter Yun, Geonil | benyun@etnews.com & Staff Reporter Kim, Jiwoong | jw0316@etnews.com