LiFePO4 batteries gaining momentum over ternary rivals in EVs | Global Sources
China, the world’s biggest manufacturers of electric vehicles and EV batteries, has begun shifting its focus to the lithium iron phosphate category. Between 2018 and 2020, ternary lithium types dominated its production, but for the first time in May 2021, LiFePO4 variants ascended to the top spot. The latter reached 8.8GWh compared to the 5GWh total of ternary lithium, according to the China Automotive Battery Industry Innovation Alliance. This trend got stronger in September, with LFP units surging to 13.5GWh, a 252 percent increase over the same month in 2020. By then, this segment already accounted for 58.3 percent of the country’s total output for motive batteries. Ternary variants, meanwhile, went only as far as 9.6GWh, increasing by nearly 103 percent during the same period but effectively relegated to second place.
While ternary units are still widely used in EVs owing to their high energy density, they are prone to capacity attenuation, which is irreversible in batteries. Exposure to high and low temperatures impacts their lithium-ion content, reducing their service life. Typical ternary units can withstand about 800 cycles, while LFPs can last roughly 2,000. More importantly, safety at high temperatures is a major concern in ternary batteries due to their nickel and cobalt aluminum structure. Also, in nail penetration tests done to simulate internal short-circuit conditions, “ternary-cathode-based cells cannot pass,” according to a report on ScienceDirect. Such batteries “are roughly 10 times more dangerous than LFP cells.”
There have been improvements, including the use of battery management systems, to address these issues, but safety and stability advantages are already fueling the trend toward LiFePO4 batteries. The LFP category is expected to dominate motive batteries in China and abroad in the coming years, according to suppliers interviewed by Global Sources.
Ternary lithium batteries are currently the mainstream type offered by Chinese manufacturers for small EVs such as bikes, scooters and golf caddies. Based on 18650 cells, they have a rating of 3.6V, 3,500mAh compared to LiFePO4 units with 3.2V, 1,800mAh. This means that ternary units can offer higher capacity with added size and weight benefits.
Having jumped on the LFP trend, Chinese suppliers are improving their batteries’ energy density, currently between 140 and 160Wh/kg, to dislodge ternary types from their preeminent position in this sphere. Gotion, one of the top 10 EV battery manufacturers in the world, announced in 2021 its latest upgrade that yielded LiFePO4 batteries with up 210Wh/kg per cell. This is said to be the highest achieved in China, so far. The company continues R&D, aiming to exceed this level in the next one or two years.
There is also an ongoing production expansion in this category, driven mainly by the domestic market for small EVs. In 2020, a total 51 million e-bikes were manufactured, surging by 41 percent YoY, according to the China Bicycles Association. This rose in 2021 and is expected to stay in an upturn in the months ahead, boosting demand for LFP batteries.
Hangzhou Liao Technology Co. Ltd invested $0.31 million in new production and test equipment to increase its output. LiFePO4 units for small EVs currently account for 15 percent of its battery shipments. The supplier plans to ramp up production in anticipation of orders domestically and from overseas.
Hundreds of companies make up China’s LFP battery manufacturing pool. BYD, Great Power, BAK Power and Zhejiang Xinghai Energy are some of the large players. Most homegrown manufacturers have selections for small EVs, which represent 10 to 30 percent of their deliveries.
These suppliers are spread over the cities of Shenzhen, Dongguan, Zhongshan, Quanzhou, Hangzhou, Huzhou, Ningbo, Suzhou, Changzhou and Tianjin, and parts of Shandong, Henan and Hunan provinces.
Widely available LiFePO4 batteries from Chinese manufacturers have a rated capacity ranging from 10 to 20Ah, rated voltage of 12, 24, 36 or 48V and life span exceeding 2,000 cycles. Most carry CE and UL certifications and are compliant with the RoHS Directive.
Products that can be sourced are not limited to this range. Customization remains a business strategy to attract and retain clients with different requirements. This is the reason Chinese companies continue to broaden their expertise and achieve differentiation through continuous R&D. The orders they receive based on buyers’ specifications account for 20 to as much as 60 percent of total shipments.
Manufacturers usually obtain anode and cathode materials, electrolyte and cases from domestic companies, but also accommodate requests for other sources.
Material and component costs rose in 2021 and led to 10 percent higher product prices. These may stabilize in the coming months.
12.8V, 20Ah LiFePO4 battery
The 12-12-5387 from Shenzhen Eastar Battery Co. Ltd is a LiFePO4 battery with 12.8V nominal, 13.6V maximum charge and ≥8V discharge cut-off voltages, and 20Ah nominal, 6A maximum and standard charge, 12A standard discharge and 36A maximum continuous discharge current ratings. This CE-marked unit, with BMS, uses 26650 cells in 4S6P configuration. Each cell has a 3.2V, 2,000mAh rating. Product weight is 5±0.5kg. An order of at least two units is required. Lead time is seven days.
