Which is more dominant in the market Lithium Iron Phosphate Battery vs Ternary Lithium Ion Battery? Both lithium iron phosphate (LFP) and nickel-cobalt-manganese ternary lithium-ion batteries (NMC) can be used in stationary energy storage systems, while nickel-cobalt-manganese ternary lithium-ion batteries (NMC) with higher energy density are more commonly used today. in electric vehicles (EVs).
However, many suppliers and customers are beginning to adopt lithium iron phosphate (LFP) batteries, one of the main reasons is that nickel-cobalt-manganese ternary lithium-ion batteries (NMC) have a higher failure rate of thermal runaway than lithium iron phosphate batteries (LFP).
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Christine Lampe Onnerud, CEO and founder of Cadenza Innovation, an energy storage company based on the innovative architecture of lithium batteries, said that although some factors can trigger thermal runaway in principle, any battery can be used safely.
That’s because it’s not the battery cathode of a lithium iron phosphate battery (LFP) or a nickel-cobalt-manganese ternary lithium-ion battery (NMC) that burns in a thermal runaway failure, but its electrolyte, Onnerud said.
Lithium Iron Phosphate (LFP) Battery Market Share Expected to Grow
The latest forecast from research firm Wood Mackenzie shows that lithium iron phosphate (LFP) batteries will occupy an increasing share of the stationary energy storage market in the next few years and may surpass nickel-cobalt-manganese ternary lithium-ion batteries by 2030. (NMC).
The development of nickel-cobalt-manganese ternary lithium-ion batteries (NMC) has also reduced the cost of nickel-cobalt-manganese ternary lithium-ion batteries (NMC) by more than 85% since 2010 due to the rapid growth in demand for electric vehicles, but the high demand in the electric vehicle sector means that the stationary energy storage industry encountered a supply shortage.
Gupta said, “Although nickel-cobalt-manganese ternary lithium-ion batteries (NMC) are in short supply in the energy storage market,
Lithium iron phosphate (LFP) batteries are in sufficient supply.
Extend delivery time and prices have remained the same, lithium iron phosphate (LFP) battery suppliers have begun to enter the market with limited nickel-cobalt-manganese ternary lithium-ion battery (NMC) applications at competitive prices, making lithium iron phosphate Batteries (LFPs) becomes an attractive option for power and energy applications.”
Lithium iron phosphate batteries (LFPs)
do not require cobalt is likely to be another important distinction. However, the large quantities of nickel-cobalt-manganese ternaries produced early for the electric vehicle industry said Bo Normark, executive officer for industrial strategy at the European Institute of Innovation and Technology.
Lithium-ion batteries (NMCs)
reduce their costs significantly, but lithium iron phosphate batteries (LFPs) can also benefit from a rapidly expanding production scale.
“The automotive industry is adopting more nickel-cobalt-manganese ternary lithium-ion batteries (NMC) because of the high energy density and high volume, it can produce at low cost,” Normark said.
But as one can see, the cost of lithium iron phosphate battery (LFP) is even lower than that of nickel-cobalt-manganese ternary lithium-ion battery (NMC) and does not require the use of metal cobalt. Also, in the energy storage industry, the cost of mass-produced lithium iron phosphate batteries (LFP) is Very low and competitive.”
Normark said battery safety might be more important than cost reduction over time. The safety of the battery energy storage system depends more critically on the battery management system and battery quality.
Conclusion
“So we safety address issues in the future, but I don’t think it’s the ultimate deciding factor, it’s more about cost,” he said.
Brian Perusse, vice president of marketing and strategy at energy storage system integrator and technology provider Fluence, said the company’s new sixth-generation energy storage system could use lithium iron phosphate (LFP) or nickel-cobalt-manganese ternary lithium-ion batteries ( NMC) battery operation.
Source: China Energy Storage Network
