LG Energy Solution (373220.KS) has agreed to join forces with Korea Electrical Safety Corporation (KESCO) to strengthen safety standards for energy storage systems (ESS). The partnership aims to establish safety standards specifically designed for lithium iron phosphate (LFP) batteries, which are widely used in the global ESS market, to boost market confidence.
LG Energy Solution announced Wednesday that it signed a memorandum of understanding with KESCO at its Daejeon R&D Center for "ESS safety enhancement and domestic LFP ecosystem development." The signing ceremony was attended by LG Energy Solution President Kim Dong-myung, KESCO President Nam Hwa-young, and other executives from both organizations.
Under the agreement, the two organizations will expand cooperation across a broad range of areas, including support for ESS facility safety management policies and strengthening accident response capabilities. They plan to jointly establish a new safety management framework covering operation, inspection, and examination standards for new facilities using LG Energy Solution's LFP batteries for ESS applications.
LG Energy Solution is the only Korean company with large-scale LFP battery production capabilities. The company has been leading the development of Korea's domestic LFP industry ecosystem by pursuing domestic LFP battery production at its Ochang Energy Plant in North Chungcheong Province.
According to market research firm SNE Research, more than 90 percent of global ESS installations use LFP batteries. LFP has become the dominant choice in the global market due to its cost competitiveness and lower fire risk, but domestic safety standards in Korea are centered on NCM (nickel-cobalt-manganese) ternary batteries, leaving no LFP-specific standards in place.
The two parties will pursue revisions to safety management regulations tailored to LFP characteristics, incorporating operational data and field experience. The initiative is expected to have a positive effect on enhancing the reliability of LFP-based ESS in Korea and expanding the market.
"We will apply the highest level of safety standards to ESS sites using LG Energy Solution batteries and do our best to establish a safety framework and ecosystem for LFP batteries for domestic ESS applications," President Kim said.