South Korean battery manufacturer LG Energy Solution (LGES) will supply 39GWh of lithium-iron-phosphate (LFP) batteries to French car manufacturer Renault's electric vehicle (EV) division Ampere from 2025 to 2030.
Under the five-year agreement, LGES will provide LFP batteries in pouch form to Ampere starting from the end of 2025 through 2030. The batteries will be manufactured at LGES's facility in Poland, which has an 86GWh battery plant, the largest in Europe. This marks LGES's first large-scale LFP battery supply deal for EVs.
LGES plans to continue expanding its LFP battery supply for EVs, starting with the European market. LFP batteries are typically more cost-competitive compared to nickel-manganese-cobalt (NMC) batteries, and LGES sees growing demand for LFP as the market shifts towards more affordable entry-level EVs.
Ampere will be integrating LFP technology alongside the NMC batteries it has been using, in order to address market volatility and technological advancements. LGES and Chinese battery maker CATL will provide Ampere with LFP batteries and technology, with the three companies setting up an "integrated value chain" in Europe.