South Korean battery giant LG Energy Solution (LGES) is negotiating with about three Chinese suppliers to jointly provide lithium iron phosphate (LFP) cathodes to its European operations, according to Reuters. 

Kallanish is still waiting for LGES' confirmation on this issue. 

The media report cited Wonjoon Suh, who is in charge of the LGES advanced automotive battery division: "We are considering various measures, including setting up joint ventures and signing long-term supply deals."

He also indicated that such partnership should help LGES lower its LFP battery manufacturing costs to levels matching its Chinese rivals in three years, according to the report. 

Currently in China, the spot price of lithium iron phosphate materials is at about CNY 38,100/tonne ($5,253.87/t), according to Zhonghui Futures, and is in the low demand season.

According to data from Global Trade Tracker, China exported a total of 147t of LFP cathode materials, an on-year increase of 268% and an on-month decline of 17%. Cumulatively in the first half, China exported a total of 766t of LFP cathode materials, an on-year increase of 26%. The average export price in June was $7,300/t and the average exporting price in the first half was $8,800/t. Chinese LFP exports to South Korea reached 64t in June and 396t cumulatively in the first half. 

Wonjoon Suh refused to disclose the exact names of the Chinese suppliers. 

Kallanish notes that previously, LGES and China's Huayou Cobalt reached an agreement on jointly launching a 50,000 t/y LFP production plant in Morocco with mass production targeted for 2026. 

The report implied that automaker Renault, which recently announced that its EV unit Ampere will integrate LFP battery technology to its EV production for cost saving reasons, could be one of the clients, and possibly the first, benefiting from the partnership between LGES and Chinese suppliers this time. The LFP batteries will be supplied by both LGES and CATL until 2030, according to Renault. 

It also cited South Korean institute SNE Research's ranking of the biggest Chinese producers supplying globally: Hunan Yuneng New Energy Battery Material, Shenzhen Dynanonic, and Hubei Wanrun New Energy Technology.