Market Research Report
Global Lithium Iron Phosphate Batteries Market - 2022-2029
|Global Lithium Iron Phosphate Batteries Market - 2022-2029|
Published: June 3, 2022
Content info: 190 Pages
Delivery time: 2 business days
The global lithium iron phosphate batteries market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period 2022-2029.
The lithium iron phosphate battery is lithium-ion-based with a graphitic carbon cathode and a lithium iron phosphate anode. A lithium iron phosphate battery has a lower energy density and operating voltage than other common lithium-ion battery types such as Nickel Manganese Cobalt (NMC) and Nickel Cobalt Aluminum (NCA).
Lithium iron phosphate batteries are being used in various applications, including vehicle use, utility-scale stationary applications, and backup power, due to their low cost, low toxicity, and long cycle life, among other considerations. Lithium iron phosphate batteries do not include cobalt.
The low cost and increasing adoption of lithium iron phosphate batteries in automotive and power grids drive the market. Nonetheless, the presence of alternatives restrains the market growth.
Initially, the key problem impeding the adoption of lithium-ion batteries has been their cost. The cell, which accounts for 50% of the cost of any lithium iron phosphate battery, is the most important component of any lithium-ion battery. However, recent innovations by lithium-ion manufacturing companies have contributed to lower battery prices, expected to fall. The adoption of sophisticated technologies to increase battery capacity and reduce component costs are significant drivers driving the growth and usage of lithium-ion batteries.
Similarly, the demand for Electric Vehicles (EV) and Hybrid Electric Vehicles (HEV) is growing as gasoline prices rise and government incentives are implemented. Global governments are pushing people to use e-mobility to lessen their reliance on crude oil and automobile pollution. Tesla Inc., an American electric vehicle manufacturer, said in 2020 that they would be employing LifePO4 batteries instead of nickel-based batteries.
Further, the power sector is working to produce renewable energy and store it for the future worldwide. The popularity of lithium iron phosphate batteries in grids and energy storage devices is fueled by their low cost, low self-discharge rate, and small installation footprint. The batteries are suited for usage in isolated places and thermal control applications since they are more resistant to high temperatures. As a result, the aforementioned factors could act as a major driver to propagate the market.
The COVID-19 outbreak has severely hit the service and manufacturing industries. Because most countries have enacted statewide lockdowns to prevent the virus from spreading further, the global economy has halted. As per World Bank, the outbreak has triggered deep recessions. It is expected to impact the global economy due to a decline in investments and disruptions in commerce and supply networks worldwide. Implementing lockdown measures to contain the virus's spread and restrict the movement of items and people substantially impacted the lithium iron phosphate market.
The pandemic's first and most significant influence on the market is on the supply chain, which tarnishes the availability of raw materials and the sale of finished goods due to a large demand-supply mismatch caused by the unavailability of raw materials and disruption of production operations.
Second, because of the COVID-19 pandemic, industrial gas-glass manufacturing requires manufacturing and purification processes, significantly inhibited by lockdowns and institutional constraints.
The pandemic's strong impact on the worldwide lithium iron phosphate industry can be explained by disruptions in important end-user verticals such as automobiles.
Growth in end-user verticles, on the other hand, aids market development in the future. Furthermore, financial assistance from governments to manufacturers and distributors of lithium iron phosphate is likely to lessen the impact of the pandemic on market participants.
The global lithium iron phosphate batteries market is classified based on type, capacity, application and region.
The market is divided into automotive, industrial, energy storage systems, consumer electronics, and others based on application. The automobile industry controlled the global lithium iron phosphate battery market. Consumers in the Asia-Pacific, North America, and Europe have been drawn to these electric or hybrid vehicles by increased knowledge of the benefits of battery-powered vehicles and rising gasoline and diesel prices. Furthermore, government agencies are enforcing the use of electric or hybrid vehicles to lessen reliance on crude oil imports. Because of their features, such as low discharge rate and low heating, lithium iron phosphate batteries are becoming more popular as energy storage devices become popular.
During the projection period, Asia-Pacific dominates the regional segment of the global lithium iron phosphate market in terms of market share. The world's main markets for electric automobiles are China and Japan. Because of their superior features, LFP batteries are frequently used in the automotive industry and are inexpensive and offer the highest level of safety among all lithium iron phosphate battery types. Other advantages of the lithium iron phosphate battery include a longer life term, no maintenance, lightweight, increased discharge, and charge efficiency.
As a result, the Asia-Pacific area is a key market for lithium iron phosphate batteries. Furthermore, the rising demand for smartphones, laptops, and other electronic devices in China, India, Japan, and Singapore will likely enhance the region's lithium iron phosphate battery market.
The global lithium iron phosphate batteries business is quite active in terms of the number and scope of global and local producers. The market has been described as fragmented because of many producers such as BYD, K2 Energy, Relion, A123 Systems, Pihsiang Energy Technology, Lithium Werks, Optimumnano Energy, Taico, Victron Energy, and Contemporary Amperex Technology. Mergers, acquisitions, product launches, investments, and collaborations are all standard market strategies employed by major market players to obtain a competitive advantage and reputation in their respective industries.
Overview: BYD is one of the largest privately held companies in China. Since its founding in 1995, BYD has rapidly acquired a strong expertise in rechargeable batteries and has become a tireless advocate for sustainable development, effectively growing its renewable energy solutions globally, operating in over 50 countries across various regions.
The company focuses on the energy and transportation sectors, particularly a Zero Emissions Energy Ecosystem, which includes economic solar power generation, reliable energy storage, and cutting-edge electrified transportation. Currently, the company is a major player in battery manufacture, with priority being given to safe iron phosphate batteries. Recently, the company invested around US$250 million directly in the North American region.
BYD Blade Battery: Compared to standard prismatic Lithium-ion cells, the Blade battery has a prismatic shape factor but is thinner and longer. The cell uses LFP cathode chemistry and features a thin blade-like form that provides structural benefits and battery pack support to traditional block-type prismatic cells. Because the cell has a bigger surface area than normal prismatic cells, it can dissipate heat more effectively. Slow heat release, decreased heat generation, a high starting temperature for exothermic reactions, and no oxygen release during thermal runaway are all features of the cells.
On November 8, 2021, BYD India launched a 71.7 kWh Blade Battery with a WLTC city range of 520 km for the Indian B2B market. The company claims that the product is one of the safest batteries. The company intends to strengthen its market presence and improve its product portfolio with the new product launch.
The global lithium iron phosphate batteries market report would provide approximately 62 tables, 58 figures and almost 190 pages.
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