IDTechEx: Prominence Lithium-Iron Phosphate EV Batteries
EV batteries are the most critical factor in determining range and cost.
While lithium-ion batteries dominate the market, their chemistries vary significantly. The first commercialised lithium-ion batteries relied on lithium cobalt oxide (LCO), which remains a staple for portable electronics.
However, as Mika Takahashi, Technology Analyst at IDTechEx, explains, the automotive sector favours nickel manganese cobalt (NMC) cathodes for their higher energy density.
“NMC cathodes allow for more charge storage, enabling greater ranges — a key concern for potential customers,” says Mika.
Despite this, the quest for affordability and sustainability has propelled alternative chemistries like lithium iron phosphate (LFP) into the spotlight.
Mika notes: “LFP offers a lower-cost cathode than NMC and generally has favourable safety and cycle life characteristics, though it sacrifices energy density.”
While NMC delivers an energy density of around 260Wh/kg at the cell level, LFP trails at approximately 170Wh/kg. Yet, LFP’s advantages have spurred its widespread adoption, accounting for nearly 40% of the global EV market in 2024, according to IDTechEx research.
Market split: Premium models vs. base trims
As the EV market grows, a clear segmentation is emerging. High-end models prioritise NMC batteries for their superior energy density and range. However, automakers are increasingly adopting LFP batteries to lower costs for base trims.
“Cost remains the biggest barrier to EV adoption,” adds Mika. “Many OEMs, including Tesla, Stellantis, VW and Renault, have announced plans to integrate LFP batteries into their base models.”
The strategic move addresses a challenging business environment, with profitability squeezed by regulatory pressures and the global EV market’s slower growth. The affordability of LFP batteries allows manufacturers to meet cost and regulatory requirements while providing sufficient range and performance for entry-level EVs.
Reduced dependence on cobalt and nickel
LFP batteries also address sustainability concerns by reducing reliance on cobalt and nickel, two materials prone to price fluctuations and ethical sourcing issues.
“There has been particular concern around the sourcing of cobalt,” confirms Mika. Adopting LFP enables automakers and battery manufacturers to mitigate these challenges.
Emerging chemistries like lithium manganese iron phosphate (LMFP) build on LFP’s foundation, offering approximately 14% greater energy density.
Mika explains: “LMFP combines improved energy density, cycle life and cost-effectiveness. Much of its development is expected in China, leveraging existing LFP production chains.”
Enhancing LFP’s energy density
LFP’s lower energy density than NMC has driven cell design and manufacturing innovations to bridge the gap. For instance, BYD’s Blade battery utilises cell-to-pack architecture and long cells to achieve an energy density of 150Wh/kg at the pack level.
Mika adds, “The anticipated Blade 2.0 could reach 210Wh/kg, although this has not been officially confirmed.”
Future advancements such as cell-to-body and cell-to-chassis designs will likely enhance range and efficiency for both LFP and NMC batteries. Additionally, the ongoing expansion of EV charging infrastructure reduces the need for oversized batteries, making LFP a more viable option for affordable EVs.
“LFP won’t surpass NMC/NCA in energy density, but incremental improvements and infrastructure growth will solidify its place in the market,” says Mika.
Emerging battery technologies
Beyond LFP and NMC, several new battery technologies are gaining traction. Silicon anodes, solid-state batteries and sodium-ion solutions promise energy density, cost and performance advancements.
Mika notes: “IDTechEx broadly expects the EV battery market to diversify, with automakers selecting specific chemistries for different applications.”
Focusing on reducing costs and enhancing performance provides a significant opportunity for LFP to expand beyond China. According to IDTechEx’s report, Plug-in Hybrid and Battery Electric Cars 2025-2045: Technologies, Players, Regulations, Market Forecasts, the global battery demand across regions is set to rise, with LFP poised to play a key role in meeting the needs of a cost-conscious, sustainability-focused EV market."
A Balanced Future
As automakers navigate evolving market demands, battery innovations like LFP and LMFP, coupled with improved infrastructure and emerging technologies, are reshaping the landscape of electric mobility.
Mika concludes: “By prioritising affordability, safety and sustainability, the EV industry is poised to reach new milestones in accessibility and adoption.”
Stay informed and inspired with the EV Magazine community by signing up for our free weekly newsletter. Each week, receive in your inbox the latest industry news and in-depth insights into the world of electric vehicles, sustainability and cutting-edge innovations.
Subscribe now, don’t miss the opportunity to stay ahead in the fast-evolving EV industry.
EV Magazine is a BizClik brand.
