LG Energy Solution said on the 7th that it signed a memorandum of understanding (MOU) with the Korea Electrical Safety Corporation (KESCO) at its Daejeon Technology Research Institute to strengthen energy storage system (ESS) safety and build a domestic lithium iron phosphate (LFP) ecosystem.
Attending the signing ceremony were President and CEO Kim Dong-myung of LG Energy Solution; Executive Vice President Kim Hyeong-sik, head of the ESS Battery Division; Executive Vice President Jeong Jae-han, chief quality officer (CQO); President Nam Hwa-young of the Korea Electrical Safety Corporation (KESCO); and Director Jeon Jun-man of the Renewable Energy Department.
LG Energy Solution and the Korea Electrical Safety Corporation (KESCO) will cooperate in various areas, including: ▲ support for ESS facility safety management policy ▲ strengthening safety incident response capabilities through inter-agency information sharing ▲ training experts and technical exchanges ▲ ESS safety support and technology cooperation.
The two sides agreed to jointly establish a new safety management framework for new sites where LG Energy Solution's LFP batteries for ESS are applied. LG Energy Solution recently said it would push for domestic production of LFP batteries at its Ochang Energy Plant in North Chungcheong.
According to market research firm SNE Research and others, more than 90% of global ESS installations use LFP batteries. With greater cost competitiveness than nickel-based ternary batteries and lower fire risk, they are considered the mainstream in the global ESS market.
President Kim Dong-myung said, "Based on this agreement, we will apply the highest level of safety standards to ESS sites using LG Energy Solution batteries and make our best efforts to establish safety systems and an ecosystem for domestically produced LFP batteries for ESS."