China's lithium iron phosphate batteries are being favored by the international market



European and American automobile enterprises target lithium iron phosphate

Overseas power battery market has been dominated by ternary lithium batteries, but up to now, a number of international mainstream car companies such as Tesla, Daimler, Ford, Stellantis Group, Rivian, etc. have shown their willingness to use lithium iron phosphate batteries. Among them, the world's fourth largest automobile group Stellantis has just signed a contract with Ningde Times, which will supply lithium iron phosphate battery cores and modules to Stellantis Group locally in Europe to help Stellantis Group's electric vehicle production in the European market.

In fact, as early as the beginning of this year, Stellantis Group plans to launch the use of lower-cost lithium iron phosphate batteries in Europe, electric vehicles, hoping to reduce the cost of power batteries by more than 40% by 2024, and then more than 20% by 2030.

No coincidence, Ford also reached a cooperation with Ningde Times earlier this year, the two sides will build a lithium iron phosphate battery factory in Michigan, the United States; in September, Yiwei lithium-ion announcement that will be with Daimler Trucks, Paccar and Cummins to set up a U.S. joint venture company, the production of lithium iron phosphate batteries.

Japan and South Korea try to change the track

In the view of the interviewed industry insiders, looking around the world, Chinese companies continue to focus on lithium iron phosphate battery materials, so foreign car companies purchasing lithium iron phosphate will certainly give preference to Chinese products.

It is worth noting that, as overseas car companies gradually switch to lithium iron phosphate batteries, many years to ternary system dominated by overseas battery companies have also begun to enter the track. For example, LG New Energy, together with Huayou Cobalt in Morocco to build a lithium iron phosphate battery factory, scheduled to go into production in 2026; SK On plans to produce a new lithium iron phosphate battery for electric vehicles before 2025.

Ji Xuehong pointed out: "Japan and South Korea car companies previously generally believe that the three yuan lithium battery is the optimal technology route for the future power battery. From the current point of view, these companies on the lithium iron phosphate battery iteration speed and development potential lack of forward-looking judgment."

At present, Japan and South Korea battery manufacturers are changing the previous insistence on ternary lithium batteries. However, a practitioner told reporters: "Japanese and South Korean companies believe that lithium iron phosphate belongs to the previous generation of products, and prefer to develop the next generation of high energy density battery. Therefore, Japanese and South Korean companies are not willing to do lithium iron phosphate battery."

Continued efforts to process innovation

Insiders believe that with the lithium iron phosphate battery is fully recognized by international car companies, its installed capacity in the international market will also be significantly increased.

CITIC Securities research report said, Tesla and BYD and other hot models of large-scale application, promote the rapid increase in the penetration of lithium iron phosphate battery, is expected to 2025, in the field of power batteries, lithium iron phosphate batteries will account for 43% of the share; in the field of energy storage, lithium iron phosphate batteries will account for 85% of the share.

"China's lithium iron phosphate battery industry market is hot, on the one hand, the enterprise early on is more optimistic about the route, on the other hand, our country earlier began to implement the new energy vehicle subsidy policy, the car companies adhere to the use of lithium iron phosphate battery to form support. In the technology iteration, lithium iron phosphate and lithium ternary technology routes are supported by the policy." Ji Xuehong pointed out that in the future, with the successive entry of battery enterprises in various countries, lithium iron phosphate industry, international competition will further intensify. Chinese battery companies have a first-mover advantage in product support, the future would like to continue to enhance or maintain the advantage, the need to further reduce costs and increase efficiency. "Enhance the level of refined management, continue to carry out process innovation, but also the need for upstream and downstream linkage, to develop applications in the field of lithium iron phosphate energy storage, these are the direction of the enterprise force."

It is worth mentioning that, as an upgraded version of lithium iron phosphate, lithium manganese iron phosphate with higher energy density has also come into view. Compared to lithium iron phosphate battery, lithium manganese iron phosphate by adding manganese elements to achieve higher energy density and lower cost, the industry believes that its prospects are also promising.