EV Battery Power
In 2022, half of vehicles produced globally were built with lithium iron phosphate (LFP) batteries
Why? –Less energy-dense—than the common EV battery chemistries today.
Increasingly popular lithium-ion battery chemistry tends to be safer & less expensive—
LFP became the dominant chemistry for batteries produced for Chinese EVs
Made out of iron & phosphorus, both of which are more abundant & less expensive
LFP battery packs can cost less than $90 per kw
Well below the average cost of NMC & NCA batteries, which have hovered around $130 per kWh.
Beyond cost, LFP provides other important advantages, such as safety and longevity.
But the trade-offs include lower energy density, meaning lower range, which had so far limited its use in EVs.
“When [Elon] Musk—I think maybe two years ago—started talking about iron phosphate, we didn’t believe it. And now I do,”
—Jeff Chamberlain, CEO of investment firm Volta Energy Technologies, “It’s coming, and it’s coming strong”