Lithium-iron phosphate battery sets off a new wave overseas
In recent years, the lithium-iron phosphate battery has sparked a global trend. International automakers have started purchasing the batteries extensively this year. Even overseas manufacturers, originally focused on ternary lithium batteries, are entering this field. This indicates that the type of battery is becoming a popular choice in the international market.
Compared to ternary lithium batteries, the lithium-iron phosphate battery is safer with better thermal stability, reducing the risk of thermal runaway. Moreover, its manufacturing cost is lower, giving it a strong competitive edge globally. Many renowned international automakers like Tesla, Ford, and Daimler are adopting the battery to enhance battery power.
Tesla has integrated this type of lithium battery into some vehicle models, reducing production costs while enhancing vehicle safety. Ford’s cooperation with CATL includes the construction of such lithium battery factories in the US to supply reliable power for their electric vehicle models.
The internationalization of lithium iron phosphate batteries has surpassed Europe and the United States. Japanese and South Korean battery manufacturers are re-evaluating their battery technology strategies. While traditionally focusing on ternary lithium batteries, these companies are now adjusting their strategies due to the rapid development of this type of lithium battery. For example, LG Energy Solutions and Huayou Cobalt are jointly building this type of lithium battery factory in Morocco and plan to put it into production in 2026.
The rise of lithium-iron phosphate batteries in the global market stems from their technological advantages and extensive development by Chinese enterprises. Chinese companies began investing heavily in this type of battery research and production years ago, accumulating significant technological expertise and production capacity. This positions Chinese companies with a competitive edge to supply high-quality battery products to global customers.
Furthermore, continuous technological innovation in lithium-iron phosphate batteries is expanding its market share. Recent advancements have increased its energy density, making its performance comparable to or even surpassing some ternary lithium batteries. This progress significantly broadens the application of this type of battery, not only excelling in electric vehicles but also in energy storage and industrial sectors, demonstrating robust battery power capabilities.
In summary, the ascent of lithium-iron phosphate batteries in the global market is a result of technological advancements and market demand. With more international automakers and battery manufacturers adopting lithium-iron phosphate batteries, this technology is poised to have widespread applications globally, driving the development of new global energy sources.
