LG Chem, one of the world's leading battery makers, has announced that it plans to enforce its patent rights on high-nickel cathodes, a key component in electric vehicle (EV) batteries. This move comes as competition in the EV market continues to increase, and LG Chem aims to dominate the industry by protecting its patented technology.
The demand for EVs is growing rapidly, and battery makers such as CATL, LG Chem, and Panasonic are set to benefit the most due to the need for high-quality cells. These companies have been met with significant demand for their products as they aim to provide packs that will give EVs a competitive range and power.
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While several cell companies produce EV batteries, LG Chem has made it clear that it will enforce the patent rights it owns on high-nickel cathodes. The company has proposed to license out its material patents on this technology to China-based cathode material suppliers.
“Licensing refers to a contract in which the patent holder agrees to provide the right to use the patent to a third party and receive royalties in return,” LG Chem said. “This makes it clear that LG Chem will not exclude the possibility of legal actions against any third-party infringers.”
LG Chem's high-nickel cathodes contain a low amount of cobalt, a controversial material that has long been used in lithium-ion batteries due to its stability. However, companies are moving away from cobalt in their cells for several reasons. LG Chem has supplied high-nickel cells to Tesla, among other companies, and vehicles built at Gigafactory Shanghai have used the battery type since 2021.
LG Chem's high-nickel cathode materials patent is crucial to the performance of lithium-ion batteries, and the company believes that it is necessary for the advancement of the high-performance EV industry. As such, the licensing strategy is aimed at promoting the development of the battery material industry with other global cathode materials suppliers. It will also help LG Chem create new sources of profits.
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“LG Chem's high-nickel cathode materials patent plays a determinant role in the performance of lithium-ion batteries and is undoubtedly necessary for the advancement of the high-performance EV industry,” an official for the company said. “We are willing to offer our patent portfolio to battery materials providers worldwide through various types of intellectual property business models.”
