Main content:
In the future, with technological progress and market expansion, key technical indicators of lithium iron phosphate batteries will be further improved, and market share is expected to continue to grow, playing a more important role globally.
Driven by demand in various fields such as energy storage and new energy vehicles, orders for lithium iron phosphate batteries have entered a period of explosive growth. Recently, many Chinese and foreign manufacturers such as Lopal Tech and Dynanonic have announced new developments in the field of lithium iron phosphate, further consolidating their market position through signing long-term supply agreements and global layout.
Industry insiders have stated that lithium iron phosphate batteries have become increasingly popular in the new energy market in recent years due to their high safety and cost advantages. In the future, with technological progress and market expansion, key technical indicators of lithium iron phosphate batteries will be further improved, and market share is expected to continue to grow, playing a more important role globally.
Cost and safety drive market expansion
Since 2025, the lithium iron phosphate battery market has been booming, with continuous cooperation and project expansion among related enterprises.
In January, Lopal Tech announced that its holding company, Lithium Source (Asia Pacific), had signed a supply agreement to provide customers with lithium iron phosphate cathode materials from 2026 to 2030 for a period of five years.
In fact, in the current battery market, lithium iron phosphate batteries and ternary lithium batteries are the two mainstream technology routes. In recent years, lithium iron phosphate batteries have shown a strong offensive in the market.
Taking power batteries as an example, data released by the China Automotive Power Battery Innovation Alliance shows that the cumulative installed capacity of power batteries in China from January to February this year was 73.6 gigawatt hours, of which the cumulative installed capacity of ternary batteries was 15.0 gigawatt hours, accounting for 20.4% of the total installed capacity, a year-on-year decrease of 23.3%; The cumulative installed capacity of lithium iron phosphate batteries is 58.6 gigawatt hours, accounting for 79.6% of the total installed capacity, with a cumulative year-on-year increase of 199.9%.
The competition is becoming increasingly fierce
Currently, lithium iron phosphate batteries have shown strong development momentum worldwide. With the accelerated globalization layout of Chinese related enterprises and the successive production of overseas factories, the export volume of lithium iron phosphate products has experienced explosive growth. According to data from the General Administration of Customs, the export volume of lithium iron phosphate from China in January this year was 1221 tons, a significant increase of 34% compared to December last year and a year-on-year increase of 916%.
It is worth noting that compared to China's mature industrial chain layout, the overseas production capacity of lithium iron phosphate is relatively small, and Chinese enterprises have formed significant first mover advantages through early research and development investment and technological accumulation. SNE Research, a research institution, previously stated that Chinese companies are expected to maintain their dominant position in the lithium iron phosphate battery market for a period of time.
The above-mentioned practitioners also pointed out: "From a global perspective, only Chinese companies have been focusing on the research and production of lithium iron phosphate battery materials. For foreign car companies planning to adopt lithium iron phosphate batteries, Chinese battery manufacturers will become their preferred partners.
The significant increase in exports of the lithium iron phosphate battery industry chain also reflects the continuous expansion of overseas demand. It is worth mentioning that after seeing this market prospect, many Japanese and Korean companies that previously focused on ternary batteries have also begun to layout the technology route of lithium iron phosphate batteries. For example, in January last year, South Korean battery company SK On announced plans to start large-scale production of lithium iron phosphate batteries as early as 2026. It is reported that this is SK On's first disclosure of its lithium iron phosphate battery strategy and production schedule; In December last year, Lopal Technology announced that its holding subsidiary LBM and LG Energy Solution had revised their supply agreement to supply 260000 tons of lithium iron phosphate cathode materials.
Analysts have pointed out that with the entry of battery companies from various countries, international competition in the lithium iron phosphate industry may further intensify, and technological innovation and market expansion will become the key to enterprise success. However, in terms of marketization of lithium iron phosphate, Chinese companies are currently at the forefront, and Japanese and Korean companies still need time to pass market verification.
Complementary technological routes
In the eyes of industry insiders, with the continuous increase in acceptance of lithium iron phosphate in overseas markets and the increasingly perfect production processes, Chinese battery companies need to further reduce costs and increase efficiency, improve their level of refined management, and continue to carry out process innovation in order to further expand their competitive advantages in the future.
In fact, the technological competition between ternary lithium batteries and lithium iron phosphate batteries has been ongoing for many years. Some industry insiders believe that ternary lithium batteries will complement lithium iron phosphate batteries in some markets, and the two will jointly promote the diversified development of the new energy battery industry.
Associate Professor at China Energy Policy Research Institute at Xiamen University stated that in the long run, both lithium iron phosphate batteries and ternary batteries can occupy certain space in different ecological niches of the industry chain, but lithium iron phosphate batteries will occupy the main market share. Ternary batteries will mainly focus on high-end vehicle applications, while lithium iron phosphate batteries can cover different fields such as high, medium, and low-end vehicle models and energy storage.
Greenmei previously stated that in terms of recyclability, ternary batteries can achieve complete resource recycling, while lithium iron phosphate batteries can only achieve lithium recycling. Iron and phosphorus have no economic value for recycling, and solid waste of iron phosphate needs to be landfilled.
Each battery technology route has its own advantages and disadvantages, for example, ternary lithium batteries performance is better in low-temperature environments compared to lithium iron phosphate batteries, and can maintain good power output. "The above-mentioned practitioners pointed out that" overall, it is difficult to achieve comprehensive breakthroughs in multiple indicators such as battery high energy density and recyclability of batteries, and these indicators overlap and intersect with each other. Therefore, it is expected that multiple types of batteries will coexist and develop in the future, suitable for different fields.
Conclusion
In 2025, lithium iron phosphate batteries will accelerate their penetration into the global new energy market with high LiFePo4 battery safety and cost advantages, and their market share will continue to rise. Chinese enterprises rely on technological accumulation and industrial chain advantages to dominate the market, while overseas enterprises accelerate their layout and intensify international competition.
Lithium iron phosphate and ternary batteries complement each other in the high-end and mid to low-end fields, promoting the diversified development of the industry. In the future, technological iteration, cost reduction and efficiency improvement, and resource recovery will become the core of enterprise competition. Multiple technological routes will coexist for a long time, adapt to different scenario needs, and jointly drive the sustainable development of the new energy industry.
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