Lithium Iron Phosphate is Globalizing

The installed volume of lithium iron phosphate batteries surpassed that of ternary batteries as early as July 2021. In that month, China's installed capacity of lithium iron phosphate batteries reached 5.8GWh, while that of ternary batteries was 5.5GWh.

Once surpassed, the status of lithium iron phosphate batteries in power batteries has been rising steadily. As of the latest full year of 2023, the domestic installed volume of lithium iron phosphate batteries reached 261.0GWh, while the ternary battery was only 126.2GWh. That is, close to 70% of new energy vehicles are equipped with lithium iron phosphate batteries.

Eight companies in the United States have announced plans to invest in the construction of LFP battery and material factories, and six of them have specified investment quotas, totaling more than 84.1 billion yuan. The eight companies are Ford Motor, LG, Gotion High-Tech, American Battery Factory (ABF), FREYR Battery, OUR NEXT ENERGY (ONE), ICL Group, and Kore Power.

Lithium iron phosphate batteries are becoming popular all over the world based on their superior safety compared to ternary batteries, as well as the easier availability of raw materials and thus lower costs. This is true for its application in new energy vehicles. In the field of energy storage, lithium iron phosphate batteries have already shone brightly.

Since 2023, although the price of lithium iron phosphate materials has been falling, which has led to poor performance of some companies, including leading companies, the expansion of production of lithium iron phosphate materials is still hot. This reflects the market's continued optimism about the lithium iron phosphate technology route.

Lithium iron phosphate is globalizing, and the future is promising!