Lithium iron phosphate is an inorganic compound that can be used as a positive electrode material for lithium-ion batteries, mainly applied in the fields of power batteries and energy storage batteries. It is one of the two mainstream lithium battery technology routes compared to ternary batteries. Due to the advantages of high energy density and long lifespan of ternary lithium batteries, the overseas lithium battery market previously regarded ternary lithium batteries as the mainstream technology route.
In recent years, lithium iron phosphate batteries have matured under the promotion of Chinese enterprises, with significant improvements in energy density, fast charging, and low-temperature performance. The advantages in cost and safety have become increasingly prominent.
As of now, many overseas car companies including Tesla, General Motors, Volkswagen, BMW, Renault, and Stellantis have begun to choose to use lithium iron phosphate batteries. According to data from GGII, the global installed capacity of power batteries in the first quarter of this year was approximately 206.9 GWh, of which 106.6 GWh were lithium iron phosphate batteries, accounting for 51.5% of the global market share.
At the same time, as the safety and economic shortcomings of ternary lithium batteries gradually emerge, overseas energy storage companies have also begun to choose to install lithium iron phosphate energy storage batteries.
The rapid growth of downstream demand has made it difficult for the overseas lithium iron phosphate industry chain to keep up in the first place, resulting in a large number of orders flowing to technologically mature Chinese lithium iron phosphate enterprises. Thanks to the earlier layout, the main manufacturers of lithium iron phosphate batteries worldwide are currently Chinese enterprises.
To meet the growing demand overseas, Chinese lithium iron phosphate producers have also begun to expand overseas.