Since January 2021, the global passenger xEV (BEVs, PHEVs, and HEVs) battery industry has seen an almost twofold increase in the share of the lithium iron phosphate (LFP) battery chemistry.
Adamas Intelligence data revealed that the share of LFP in the EV battery market saw a YoY growth to 26% in January 2022 from just 17% in the same period last year. As per the report, this increase suggests that LFP batteries make up roughly one-third of all xEV batteries.
Leading xEV LFP batteries (Jan-Sep 2022)
Electric vehicle giants Tesla and BYD accounted for 68% of xEV LFP batteries installed in the first nine months of 2022. Meanwhile, the remaining 32% were contributed by other manufacturers, including SGMW, GAC, MG, and Geely.
China leads the LFP Chemistry market
Remarkably, China accounted for more than 85% of all LFP deployed worldwide in new passenger xEVs from January to September 2022, according to Adamas Intelligence.
That said, only 15% of global consumption comes from the rest of the world. Notably, other major international markets, including the US, India, UK, and Germany, accounted for the lowest share.
Apart from that, the majority of LFP batteries used beyond China were made there.
All that said, more major worldwide manufacturers, including Toyota, Volkswagen Group, Stellantis, and Ford, will need to employ LFP Chemistry to boost their market share. Moreover, the Chinese PEV makers that export products internationally must also utilize this battery chemistry extensively.
