Industry news

Lithium iron phosphate batteries are expected to become mainstream

2020-12-19

With the development of technology, lithium iron phosphate will gradually gain more market share  

In late July, Tesla CEO Elon Musk drew attention during an earnings call.If the supplier is more efficient and environmentally friendly in nickel mining, he says, he will sign a large contract over a longer period of time.

According to a new report by Wood Mackenzie, lithium iron phosphate is expected to overtake lithium-manganese-cobalt-oxide as the dominant electric storage chemical over the next decade, gaining a foothold in the battery storage market and then gradually becoming dominant in electric vehicles.

Musk has long been a proponent of not using cobalt in battery production, so the news is good for him.

Woodmckanz is a global research and consulting firm specializing in the energy, chemicals, renewable resources, metals, and mining industries, and is known for providing insight, analysis, and advisory advice.

In 2015, lithium iron phosphate accounted for 10 percent of the market for electricity-storage chemicals, according to the Wood Mackenzie report. Over the next five years, the share of such batteries has risen rapidly and is expected to exceed 30 percent by 2030.

This growth is due to supply shortages of lithium-manganese-cobalt-oxide batteries and components in late 2018 and early 2019.As the demand for battery storage and electric vehicles grows rapidly, there will inevitably be shortages of raw materials for both lithium iron phosphate and lithium-manganese-Cobalt-oxide batteries.

Due to the growing demand from electric vehicles and energy storage systems, the battery industry needs to develop advanced lithium-ion batteries by improving their cathodes, anodes and electrolytes.Although there is a shortage of lithium-manganese-cobalt-oxide batteries in the energy storage market, there are still a large number of lithium iron phosphate batteries available, mainly in China.

Tower, a senior analyst at wood Mackenzie m Gupta (Mitalee Gupta) said that due to the lithium manganese - cobalt - oxide battery delivery time increases and the price was flat, the lithium iron phosphate battery supplier start to competitive prices into lithium manganese - cobalt oxide battery limited market, thus make the lithium iron phosphate batteries attractive in the field of electric power and energy.

The types of batteries that will be used for storage in the future will be different from those used for electric vehicles, and each type of battery will require further innovation and specialization, which is expected to propel lithium iron phosphate batteries to a dominant position in the near future.

Because current lithium-ion energy storage systems run out of power after four to six hours, and longer energy stores suffer from performance degradation and poor economy, there is an urgent need for longer-lasting systems.

In addition to storing energy for longer periods of time, Gupta expects the market to value strong recycling performance over energy density and reliability, where lithium iron phosphate batteries excel.Cost and safety will continue to be top considerations for battery vendors in a variety of battery application scenarios.

Electric vehicles will continue to account for the majority of global demand for lithium-ion batteries over the next decade.Demand for lithium-ion batteries for mobile electronics will fall from 26 percent in 2020 to 6 percent in 2030.

According to Wood Mackenzie, Asian countries are the world leaders in lithium-ion battery capacity, with manufacturers including Ningde Times, LG Chemical, BYD and SK Innovation, followed by emerging European producers such as Northvolt and ACC.

While the share of lithium iron phosphate in the electric vehicle market is not expected to rise as rapidly as in the battery storage market, the report notes that lithium iron phosphate cannot be ignored.

The chemical is already popular in China's electric car market and is expected to take off globally.Wood Mackenzie expects lithium iron phosphate batteries to account for more than 20 per cent of the electric vehicle market by 2025.

Milan Thakore, senior research analyst at Wood Mackenzie, said lithium iron phosphate would have more applications in electric car batteries if there were big improvements in weight, energy density and CTP battery pack technology.