In terms of materials, lithium iron phosphate batteries use lithium iron phosphate (LiFePO4) as the cathode material and iron as the battery raw material. The PO bond in the lithium iron phosphate crystal is very stable and difficult to decompose. Even at high temperatures or when overcharged, it will not cause structural collapse, heat generation, or the formation of strong oxidizing substances, thus possessing good safety.
Structurally, lithium iron phosphate has the advantages of lower cost, stable structure, and longer charge-discharge cycle life, but it also has the problems of low energy density, low charge-discharge efficiency, and poor performance at low temperatures.
In terms of application, lithium iron phosphate batteries are suitable for scenarios with ample space, the ability to install large-volume batteries, high safety requirements, and the need for long-term uninterrupted operation. Current applications of lithium iron phosphate batteries include new energy vehicles, energy storage, 5G base stations, two-wheeled vehicles, heavy-duty trucks, and electric ships.
Among them, the application of lithium iron phosphate batteries accounts for a large proportion, including new energy passenger vehicles, new energy buses, and new energy special vehicles. According to industry data, the proportion of lithium iron phosphate battery shipments in total power battery shipments rebounded from 28% in 2019 to about 35-40% in 2020.
Currently, lithium iron phosphate (LFP) batteries account for over 94% of the energy storage market, including both new and recycled batteries, primarily used in UPS systems, backup power supplies, and communication energy storage. Furthermore, the application of LFP batteries in 5G base stations is showing rapid growth, opening up new market opportunities.
The electric ship market has a promising future, and lithium iron phosphate batteries are currently the only batteries used in this field. In the battery swapping market for two-wheeled vehicles, lithium iron phosphate batteries are also beginning to be used in large quantities.
