The Lithium Iron Phosphate (LFP) battery chemistry practically doubled its share within the world passenger xEV (BEVs, PHEVs, HEVs) battery market since January 2021, nevertheless it’s very China-centric.

Based on Adamas Intelligence, LFP’s share elevated from 17% in January 2021 to 26% in January 2022 and most lately accelerated to 31% as of September 2022. Which means that nearly a 3rd of all xEV batteries are LFP.

Batteries for industrial xEVs, power storage techniques or different functions should not included within the numbers.

Nevertheless, the extra energy-dense NCM household (nickel-rich cathode) continues to be the dominant resolution with a greater than two occasions increased share. It is unclear whether or not LFP will have the ability to beat NCM in some unspecified time in the future.

Attention-grabbing is that 68% of all xEV LFP batteries deployed by way of the primary 9 months of 2022 have been deployed by two producers – Tesla and BYD, which by the way in which are additionally the 2 largest BEV and total plug-in electrical car gamers.

Tesla Mannequin 3 LFP battery pack (supply: Munro Reside)

All the different producers mixed (together with different main LFP customers like SGMW, GAC, MG, Geely) have been liable for the remaining 32%.

Adamas Intelligence notes that throughout the first 9 months of the yr, over 85% of all LFP deployed onto roads globally in newly-sold passenger xEVs have been in China. That is fairly attention-grabbing as a result of it signifies that the remainder of the world is accountable just for 15% and the highest markets have been: the US (largely LFP-powered Tesla Mannequin 3 Normal Vary), India, the UK and Germany.

If that is not sufficient to name the LFP very China-centric, it seems that almost all the LFP batteries deployed exterior of China have been produced in China.

To additional increase the LFP’s share, this battery cell chemistry should be adopted by different world producers (like Toyota, Volkswagen Group, Stellantis, Ford) and used on a mass scale by the Chinese language producers in plug-in autos exported globally.

Solely time will inform whether or not the LFP chemistry, thought of a extra reasonably priced one, will proceed its enlargement or if we are going to see the return of the power density race within the next-generation EVs.