EnerTech International has initiated development of lithium iron phosphate (LFP) batteries, with plans to begin full-scale mass production after 2027 to target the growing energy storage system (ESS) market.

The company announced on the 13th that it has produced a prototype of a small-form-factor LFP cell and plans to complete development next year by scaling up the cell size. EnerTech International will expand its product portfolio from the currently mass-produced nickel-cobalt-manganese (NCM) batteries to LFP.

Beginning in the first quarter of next year, the company will also start developing lithium manganese iron phosphate (LMFP) batteries, which add manganese to LFP to increase energy density. LMFP development is being prepared in collaboration with an overseas cathode-material manufacturer.

“The demand for LFP batteries is rapidly increasing, especially for ESS applications, so it is critical for us to respond,” said Sang-Hyun Nam, Head of R&D at EnerTech International (Executive Director). “In addition to LFP, we also plan to diversify our lineup with the development of a high-voltage ‘NCM 613’ battery, containing 60% nickel.”

The company’s flagship battery product is the “NCM 811,” consisting of 80% nickel, 10% cobalt, and 10% manganese. With its high nickel content, the NCM 811 maximizes energy density, thus extending electric-vehicle driving range.

However, the high performance of NCM 811 also results in high cost. Alongside the temporary slowdown in EV demand (the “EV chasm”), cost competitiveness has become increasingly crucial, bringing mid-nickel and LFP batteries into the spotlight. While mid-nickel and LFP have lower energy density than high-nickel chemistries, they offer significant price advantages. LFP also provides excellent safety and long cycle life, driving strong demand in the ESS sector.

EnerTech International plans to produce LFP cells at its new 2-GWh battery plant under construction in the Dong-Chungju Industrial Complex. The plant is scheduled for completion in 2027, with LFP development being finalized next year, followed by equipment installation and full-scale production ramp-up.

In addition to its existing 1-GWh production facility in Chungju, the company is pursuing global expansion. EnerTech is building two battery plants in Europe with a combined production capacity of 8 GWh, and another 6-GWh facility in South Africa. By 2028, the company’s total global production capacity is expected to reach 17 GWh.

Founded in 2001 as a spin-off from the battery division of Saehan Group, EnerTech International manufactures lithium-ion batteries for electric buses, trucks, and hybrid vehicles. Its major domestic and global customers include Hyundai Motor Company, Ford, LG Energy Solution, and Komatsu.

“We will continue to secure growth momentum by ensuring timely development and capacity expansion to respond to the battery market rebound following the EV chasm,” Nam emphasized.