Lithium Iron Phosphate Battery Vs. Ternary Lithium Battery: Who Will Dominate The Future Market?

Lithium iron phosphate battery vs. ternary lithium battery: Who will dominate the future market?

In the booming wave of electric vehicles, power batteries, as core components, have always attracted much attention in terms of technology routes. As the two mainstream technology routes, lithium iron phosphate batteries (LFP) and ternary lithium batteries (NCM/NCA) each have unique advantages and disadvantages. Who will dominate the market in the future has also become a hot topic in the industry.

1. Performance comparison: Each has its own merits

1. Energy density: Ternary lithium batteries have a clear advantage in energy density due to their higher voltage platform and gram capacity, which means that at the same weight or volume, ternary lithium batteries can provide longer driving range. This is also the main reason why ternary lithium batteries were widely used in early electric vehicles.

2. Safety: Lithium iron phosphate batteries have higher thermal stability and are not easy to decompose at high temperatures. Even if thermal runaway occurs, their heat release rate is slow, which buys valuable time for passengers to escape and rescue. However, ternary lithium batteries are more prone to thermal runaway at high temperatures, and have a fast heat release rate, which poses a higher safety risk.

3. Cycle life: The cycle life of lithium iron phosphate batteries is generally better than that of ternary lithium batteries, and they can withstand more charge and discharge times, which means that they have a longer service life and lower cost for battery replacement later.

4. Low temperature performance: The performance of ternary lithium batteries is less attenuated in low temperature environments, while the capacity and power output of lithium iron phosphate batteries will drop significantly at low temperatures, affecting the vehicle's endurance and power performance.

5. Cost: The positive electrode material of lithium iron phosphate batteries does not contain precious metals, the raw material cost is lower, and the production process is relatively simple, so its manufacturing cost is significantly lower than that of ternary lithium batteries.

2. Market structure: one rises and the other falls

In the past few years, ternary lithium batteries have dominated the power battery market with their high energy density advantages. However, with the advancement of technology and changes in market demand, lithium iron phosphate batteries are making a strong comeback.

1. Technological progress: By improving battery structure and optimizing material systems, the energy density of lithium iron phosphate batteries has been continuously improved, and the gap with ternary lithium batteries has gradually narrowed. For example, BYD's blade battery technology has greatly improved the range of lithium iron phosphate batteries.

2. Safety first: In recent years, the frequent spontaneous combustion accidents of electric vehicles have aroused consumers' high attention to battery safety. The higher safety advantage of lithium iron phosphate batteries has become the choice of more and more car companies.

3. Cost advantage: In the context of increasingly fierce competition in the electric vehicle market, reducing costs has become an important goal for car companies. The lower cost advantage of lithium iron phosphate batteries makes it more competitive in terms of cost performance.

III. Future Outlook: Coexistence and Co-prosperity

In the future, lithium iron phosphate batteries and ternary lithium batteries will present a pattern of coexistence and co-prosperity, each occupying a dominant position in different market segments.

1. Lithium iron phosphate battery: With its advantages of high safety, low cost and long life, lithium iron phosphate batteries will dominate in the fields of mid- and low-end electric vehicles, electric buses, energy storage, etc.

2. Ternary lithium battery: With its high energy density advantage, ternary lithium batteries will continue to occupy an important position in the fields of high-end electric vehicles, high-performance electric vehicles, etc.

IV. Conclusion

The technical route competition between lithium iron phosphate batteries and ternary lithium batteries is essentially a game of energy density, safety, cost and other factors. In the future, with the continuous advancement of technology and the changing market demand, both technical routes will be further developed and improved, jointly promoting the vigorous development of the electric vehicle industry.