LFP (lithium ferro-phosphate) batteries are gaining momentum in EV applications, especially for electric buses and energy storage systems, with Foxconn's electric buses also adopting such batteries, according to supply chain sources.
LFP battery is capable of charging and discharging at high speeds compared to other types of batteries, and is a rechargeable battery consisting of LiFePO as its cathode material.
Global EV sales are estimated to reach 9.8 million units in 2022, and China, Europe and the US will remain the top-3 markets, with battery demand expected to top 533GWh this year, the sources said.
Lithium-ion batteries have seen the most extensive applications, with lithium ternary batteries, particularly, as the mainstream. But statistics show that LFP has already outraced lithium ternary in China's battery market since 2021, when Tesla began to incorporate LFP battery into its EVs, the sources noted.
Both lithium ternary and LFP have their own advantages in price and traits, and will be differentiated in the market based on the use. With its cost-effective and safety advantages, LFP will be favored by the energy storage industry and makers of electric buses, commercial EVs and low- and medium range passenger cars, while lithium ternary batteries will continue to be mainstay application in long-range passenger EVs, the sources added.
The sources also pointed out that LFP has become mainstream choice for global energy storage industry, and even TSMC has incorporated LFP into its high-performance computing rooms and uninterruptible power supply systems.