According to Researcher and Research LLC, a new high share of lithium-iron-phosphate (LFP) battery in global electric vehicle (EV) market (in terms of MWh) was 19.2% in March 2022. We expect the share of EV using LFP battery continues to reach new highs this year.

 

Taipei, Taiwan, May 3, 2022—According to Researcher and Research LLC, a new high share of LFP battery in global EV market (in terms of MWh) was 19.2% in March 2022, as shown in figure 1. We expect the share of EV using LFP battery continues to reach new highs this year, mainly driven by sales from Tesla, BYD, GM (Wuling), Chery, GreatWall, XPeng and etc.

 

Share (MWh) of LFP battery in global EV market

Figure 1  Share (MWh) of LFP battery in global EV market

 

Currently, only Chinese battery manufacturers dominate LFP battery market. As for major battery manufacturers outside China, such as Japanese and South Korean makers, still focus on the production of nickel-manganese-cobalt (NMC), nickel-cobalt-aluminum (NCA) and etc. They are not interested in producing LFP battery for EV, because they consider the profit is too low and the recycling value is low as well.

The proportion of EV equipped with LFP battery in 2021 was 14.3% (in terms of MWh) , a significant increase from 5.2% in 2020. Under the pressure of price hikes of battery supply chain this year, we rose our estimate for the proportion of LFP battery from 20.6% to 21.5% this year, as shown in figure 2, and we do not rule out the possibility of revising our estimate upwards later this year. Dr. Y.-C. Hsu, co-founder & CEO at Researcher and Research LLC considers that ”The ability to significantly reduce the cost of EV battery is still the key to stimulate the growth of market demand in these years. Moreover, under the dual consideration of cost and safety, the incentive for automakers to choose LFP battery at present is even stronger.”

In the long term, we expect LFP battery to win the low- to mid-priced EV market, sodium-ion battery will be the main competitor for LFP battery in low-priced EV models, solid-state battery will focus on high-priced EV models, while ternary battery such as NMC/NCA, has high value of mineral resources recycling, and can realize closed loop, will stick to the mid- to high-priced market, as shown in figure 2.

 

Shares (MWh) of global EV battery by type, 2020-2030

Figure 2  Shares (MWh) of global EV battery by type, 2020-2030

 

 

 

Note:

Researcher and Research here defines EV as battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV), with passenger car as the primary purpose.

 

 

About Researcher and Research LLC

Established in January 2020, Researcher and Research LLC determined to be one of the best research companies in the field of market and strategy to help our clients think strategically to assess business investments. We will initially focus on research of electric vehicle (EV) market and automakers’ strategy, and then expand into other areas, such as EV battery supply and demand analysis and self-driving technology research. We believe that quality research will lead to a high level of customer and we are committed to continue to invest more research resources and provide better quality research services.

 

 

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