A lithium iron phosphate (LiFePO4) battery is a type of rechargeable lithium-ion (Li-ion) battery. The advantages over traditional cobalt-based lithium-ion batteries are higher output, faster charging, lighter weight, and longer life. The battery also has better safety properties and does not explode even under extreme conditions. The LiFePO4 battery also eliminates concerns that his Cobolt at the end of its life will be released into the environment through improper disposal.
Key players in the global LFP battery market include CATL, BYD, Gotion High-Tech, EVE, REPT, CALB, Great Power, Lishen Battery, Wanxiang A123, ANC, Hithium, Lithion (Valence) and others. The market is highly concentrated, with the top 12 companies accounting for about 96.56% of the global market. Asia, Europe and NAFTZ are the main markets, accounting for more than 91.9% of his global market.
The global HIS LFP battery market was valued at USD 1,287.71 million in 2020 and is expected to reach USD 1,662.83 million by the end of 2027, growing at a CAGR of 3.2% HIS from 2022 to 2027.
The global LFP battery market is valued at USD 7,190.34 million in 2022 and is projected to reach USD 15,179.75 million by the end of 2028, growing at a CAGR of 9.9% from 2022 to 2028.
In 2021, prismatic batteries have captured a large 69.7% share of the global LFP battery market. This product segment is expected to reach $8,984.44 million by 2028, compared to $5,014.45 million in 2021. In the LFP battery market, electric vehicles occupy a significant share and are expected to reach a volume of 132,445.81 MWh by 2028, with a CAGR of 11.6% between 2022 and 2028.
2022 data is an estimate based on historical data and combined views of industry experts, manufacturers, distributors and end-users.
Tesla’s price drop for electric car batteries is expected to shake the global battery industry. The world’s leading EV manufacturer announced on October 21 that all standard-class electric vehicles will be equipped with lithium iron phosphate (LFP) batteries. The move could intensify competition between Chinese battery makers such as CATL and BYD, which produce LFP cells, and South Korean manufacturers focused on nickel-cobalt-manganese (NCM) batteries. According to market tracker SNE Research, the global market share of LFP batteries rose from 14.8% last year to 24.1% in the first half of this year on the back of increased sales of Tesla Model 3 and Hongguang MINI EV in China. Meanwhile, the market share of NCM622 and NCM523 – common NCM types – decreased from 22.5% and 19.4% to 22% and 16% respectively over the period.
Low fuel consumption LFP cells were mainly used in China due to their low price. The industry expects his energy-dense NCM batteries to become a trend for electric vehicles that require longer range and faster charging times.
However, while global automakers such as Volkswagen announced plans for low-cost electric vehicles, demand for LFP batteries surged as the prices of key materials such as cobalt and nickel in NCM batteries skyrocketed. European battery manufacturer ElevenEs has decided to build his LFP cell factory in Serbia with an annual capacity of 16 gigawatt hours (GWh). BYD has signed a deal to supply Tesla with 10GWh of his LFP batteries, media reported.
Almost 100% of current EV models with LFP batteries are manufactured and sold in the Chinese market. In terms of EV sales from January to July this year, the increasing share of LFP batteries was mainly driven by models such as GM Wuling HongGuang Mini, Tesla Model 3, BYD Han, BYD Qin Plus DM-i and BYD Qin Plus Towed Sol E10X.