Will lithium iron phosphate (LiFePO4) batteries replace ternary lithium batteries?

　　Consumers' requirements for batteries are safety, range, price, and energy density. At this stage, lithium-ion batteries are mainly used instead of lead-acid batteries. However, the safety issues of lithium batteries, the continuity of supply and demand of raw materials such as lithium, cobalt, and manganese, and the resulting battery price issues are all challenges.

　　Lithium-ion batteries are batteries in which lithium ions move from the negative electrode to the positive electrode during discharge, and lithium ions move from the positive electrode to the negative electrode during charging and find their own position.

　　Lithium-ion batteries have the advantages of high energy density, no memory effect, and low self-discharge when not in use, and are widely used in portable electronic devices such as smart phones. In addition, taking advantage of the characteristics of high energy density, its frequency of use in the defense industry, automation systems and aviation industry is gradually increasing. However, since such lithium-ion batteries may cause fires if used improperly, solutions to the problem have been proposed from various angles.

　　For example, lithium iron phosphate (LFP: LiFePO4 battery, led by China BYD, CATL, etc.) has recently appeared. Compared with commonly used lithium manganese cobalt (LMC) lithium ion batteries, lithium iron phosphate batteries have a shorter cruising range but are safer, cheaper. Although the energy density is low, BYD has developed a blade battery to make up for the shortcomings. It is said that the space utilization rate of the battery pack is more than 50% higher than that of traditional lithium iron phosphate bulk batteries. It also has the advantage of being difficult to ignite.

　　As we all know, LFP batteries can remain stable even when the temperature reaches 500°C, while LMC lithium batteries start to undergo chemical reactions at around 200°C.

　　In order to take advantage of these advantages, battery manufacturers and suppliers including BYD and CATL are actively developing LFP batteries. In 2020, the installed capacity of lithium iron phosphate batteries in the Chinese market totaled 24,383 MWh, a year-on-year increase of 20.6%. Therefore, the share of LFP batteries in the Chinese battery market has increased to about 39%. Tesla also uses LFP batteries in domestic models. Recently, following Volkswagen and Ford, Mercedes-Benz also announced that it will be installed in various battery electric vehicles including EQS, and the market is expanding. It is planned to install Ningde era lithium iron phosphate batteries in low- and medium-priced models, excluding high-performance Mercedes-Benz AMG. Hyundai Motor Company also decided to use BYD's blade batteries.

　　At present, the most popular lithium iron phosphate battery is Shanghai GM Wuling's Hongguang MINI electric vehicle. At a price of 28,800 yuan, it surpassed Tesla and ranked first in the Chinese market.

　　Tesla's Elon Musk also said that the standard range of electric and household batteries will switch to LFP. Goldman Sachs also predicts that the importance of the LFP system will grow, and another battery research company predicts that it may account for 20-40% of electric vehicle batteries by 2030.

　　The LFP system is mainly produced by Chinese battery manufacturers, and the cost is about 20% lower than the NMC (nickel, manganese, cobalt) and NCA (nickel, cobalt, aluminum) systems developed by Japanese and Korean battery manufacturers. As a mobile phone battery that emphasizes energy density, there are many opinions that the LFP system will eventually replace the NMC system and the NCA system.