Lithium Iron Phosphate Battery Market Share Will Increase To 30%

According to the Mining.com website, the latest report by Wood Mackenzie predicts that in the next 10 years, lithium iron phosphate batteries will replace nickel cobalt manganese ternary batteries (NMC) batteries as the main stationary electric energy storage tool. The company predicts that by 2030, the market share of lithium iron phosphate will increase from 10% in 2015 to more than 30%.

　　 The report stated that in the past, the energy storage system relied heavily on power batteries, but changes in performance requirements will cause market differentiation. Since 2010, the rapid increase in demand for electric vehicles has led to a reduction in the cost of lithium-ion batteries by more than 85%. Historically, the energy storage market was dominated by NMC batteries. From the end of 2018 to the beginning of 2019, the energy storage industry's demand for NMC batteries has risen rapidly and has exceeded the supply capacity.

　　 In the context of the shortage of NMC batteries, the supply of lithium iron phosphate batteries is abundant, especially in China.

Wood Mackenzie senior analyst Mitalee Gupta (Mitalee Gupta) wrote in the report that due to the extended delivery time of NMC batteries and the price is flat, lithium iron phosphate battery suppliers are trying to offer more competitive prices. Enter the NMC market, which makes lithium iron phosphate an attractive choice for power and energy applications.

Gupta believes that as the demand for electric vehicles and energy storage systems rises and performance requirements change, original equipment manufacturers (OEMs) will begin to pay more attention to innovation and product specialization in the next few years, making the battery required for each application The types are differentiated.

　　 "The energy storage system market's demand for high recyclability and high frequency will exceed the requirements for energy density and stability. However, cost and safety are still the most important factors considered by battery suppliers."

　　Wood Mackenzie believes that although lithium iron phosphate batteries may enter some markets for energy storage system applications, this type of battery will be mainly used in China before entering the global electric passenger car market.

　　Wood Mackenzie predicts that by 2025, the market share of lithium iron phosphate in power batteries will exceed 20%.