LG Energy Solution to use RE100 battery materials from 2025

[Courtesy of LG]

LG Energy Solution Ltd. and Samsung SDI Co. have reportedly requested that their battery material suppliers develop “RE100” battery materials to meet the requirements of global automakers in energy sustainability.

LG Energy Solution requested its suppliers to supply “RE100” products by 2025, while Samsung SDI is aiming for the supply of RE100 materials by 2035. The strategy aims to proactively improve the two companies’ competitiveness and outperform Chinese batteries as regulations on batteries such as power usage and minerals tighten.

According to industry sources on Wednesday, LG Energy Solution requested its battery material suppliers to supply “RE100” products by 2025. “RE100” signifies that 100 percent of the used electricity is covered by renewable energy, a system adopted by global companies to enhance their environmental, social, and governance (ESG) scores.

For its part, Samsung SDI is known to have requested the supply of RE100 materials by 2035, with a company official saying, “We are still in discussions with individual suppliers.”

LG Energy Solution is known to have set the most ambitious goals in the industry for its carbon emissions. The company plans to secure renewable energy for its operations until 2025, including factories in North America, Europe, China, and even Korea. It has also set a goal of achieving “net-zero” not only in energy consumption but also across all business aspects by 2040.

“In today’s era, regulatory support and regulations determine a company’s competitiveness, not just the technological capabilities and prices of products,” according to a senior LG Energy Solution official.

The push for RE100 battery materials is aiming for the “Scope 3” target covering the entire supply chain in pursuit of net-zero. This is a more ambitious target compared to achieving net-zero for a company’s own energy consumption (Scope 1) and its entire production process (Scope 2).

Battery companies are requesting RE100 battery materials in response to the intensifying competition with Chinese companies on the belief that pre-emptively meeting the demands of global automakers will give them an advantage in future competitions.

“As the proliferation of electric vehicles promotes reducing carbon emissions, battery manufacturers are receiving requests for carbon reduction throughout the production process as a means to reduce the carbon footprint,” an industry insider said.

Samsung SDI is known to be pursuing net-zero, aiming to use 100 percent renewable energy for its facilities in Hungary and China by 2025.

SK on Co. Ltd. is also rushing to reduce its carbon emissions, achieving RE100 early at its Hungarian plant in Europe. SK on has announced its goal to achieve RE100 at its global plants by 2030 and become the first global battery company to achieve net-zero by 2035.