Will lithium iron phosphatebatteries become mainstream?

In China, the output of new energy vehicles from January to March 2021 is 480,000 units, a year-on-year increase of 327%; the total installed battery capacity is approximately 21.61 million kWh, a year-on-year increase of 29%. The whole world is working hard to reduce greenhouse gases, and the attention of new energy vehicles is rising. Lithium batteries and other related industries are showing a thriving scene.

Lithium batteries are the power source for the entire new energy vehicle. Although the ternary lithium battery (NCM) has the characteristics of high energy density . And therefore occupy the mainstream market. However, judging from the proportion of overall lithium battery shipments in March 2021, ternary lithium accounted for 45%, while lithium iron phosphate (LiFePO4) batteries accounted for 53%, completing the first surpass.

Seeing such data, many people will be puzzled: Why does lithium iron phosphate (LiFePO4) exceed ternary lithium batteries (NCM)? Will lithium iron phosphate (LiFePO4) batteries become mainstream in the market?

Before answering this question, let's look at a few sets of data:

①According to the monthly information of the China Association of Automobile Manufacturers, from January to February 2021, the total installed capacity of power batteries in China was 14.2GWh, a cumulative year-on-year increase of 388.6%. Among them, the ternary lithium loading volume was 8.7GWh, accounting for 61.3%, a year-on-year increase of 315.5%; and the lithium iron phosphate (LiFePO4) loading volume was 5.5GWh, accounting for 38.6%, a year-on-year increase of 586.8%.

At the same time, among the best-selling models in China in 2020, six of them use lithium iron phosphate (LiFePO4) batteries. Lithium iron phosphate (LiFePO4) is also used in the new models of Tesla and BYD

It can be seen that, in terms of quality and consumer acceptance, lithium iron phosphate (LiFePO4) batteries have become the mainstream.

The growth of lithium iron phosphate (LiFePO4) batteries can be described as explosive growth. The pattern of power batteries is slowly taking shape, and lithium iron phosphate (LiFePO4) batteries are likely to become the new overlord! Why is lithium iron phosphate (LiFePO4) likely to become the main product in the market?

First, lithium batteries were first born in 1970, not long, and battery technology is still advancing. Therefore, lithium iron phosphate (LiFePO4) batteries are favored not because of technological leap but because of cost and safety. Sexual considerations. Lithium iron phosphate (LiFePO4) battery has no precious metals, its raw materials are easy to mine, and the output is large, which has a cost advantage. Lifepo4 is about 20% cheaper than ternary lithium battery (NCM). 

Second, safety is the biggest advantage of lithium iron phosphate (LiFePO4) batteries. Spontaneous combustion accidents of electric vehicles will become news headlines every three to five. Consumers are frightened. Therefore, many people put safety in the first place when buying a car, and the price and appearance are in the back. Therefore, the higher safety of lithium iron phosphate (LiFePO4) battery is the key to its widespread consumer trust and choice.

The current market situation seems that lithium iron phosphate (LiFePO4) batteries may become mainstream in the future. Aside from other factors, the most important thing is the firm choice of Tesla, BYD, Xiaopeng, and other car companies, which are promoting the rapid upgrade of lithium iron phosphate (LiFePO4) technology in disguise.

Keheng New Energy Technology (Shenzhen) Co., Ltd. is a professional manufacturer of lithium batteries, battery packs, energy storage systems and other products. Welcome to follow us