What’s Happening: LG Chem is moving to enforce its battery material patent rights, aiming to dominate the global advanced battery market as electric vehicle (EV) demand increases. The company has proposed licensing its high-nickel cathode material patent to China-based cathode material suppliers and plans to enforce its patent rights against other global cathode material companies.
Why It Matters: LG Chem’s move signals a growing technological competition in the EV market. By licensing its high-nickel cathode patents, the company positions itself to benefit from the growth of the global cathode materials market, which is expected to surge 233% from $35.6 billion in 2023 to $82.9 billion in 2030, according to SNE Research.
- High-nickel cathodes are crucial for high-performance EVs, as they increase the energy density of batteries, extending the driving range.
- In March 2022, LG Chem acquired over 40 high-nickel cathode material patents from Hanyang University, becoming the world’s first producer of nickel-cobalt-manganese (NCM) cathode materials.
- The acquired patents include an essential “orientation patent” that increases the driving range of EVs by 20-30% based on the structural characteristic of cathode materials.
- These patents are recognized as vital for producing high-nickel cathode materials and are registered in many countries, including Korea, China, the U.S., and Europe.
Bottom Line: LG Chem’s decision to enforce its patent rights and license its high-nickel cathode material patents to other suppliers is a strategic move to dominate the global advanced battery market. By promoting the development of the battery material industry and collaborating with global cathode material suppliers, the company aims to capitalize on the rising demand for high-performance EVs and generate new sources of profit.