Please buy new BYD lithium iron phosphate batteries from us。
According to data released by the China Automotive Power Battery Industry Innovation Alliance, in May 2024, the installed capacity of lithium iron phosphate batteries was 29.5GWh, a year-on-year increase of 54.1%, accounting for 74.0% of the total installed capacity, and the market share of lithium iron phosphate batteries exceeded the 70% mark.
In addition, in the field of energy storage, according to statistics from the Zhongguancun Energy Storage Industry Technology Alliance, lithium iron phosphate batteries are the main energy storage batteries, accounting for 94.4%.
Just a few years ago, lithium iron phosphate batteries have always been synonymous with “cheap and backward” in the eyes of many people, and their market share is not as good as ternary batteries. Why did lithium iron phosphate batteries start to counterattack in just a few years?
Energy density increased, narrowing the gap with ternary batteries
From 2009 to 2016, with the introduction of policies such as “10 cities, 1,000 vehicles”, my country’s new energy vehicle industry developed rapidly. During this period, lithium iron phosphate batteries dominated, because a large part of them were large commercial vehicles, which were not sensitive to energy density (including volume and mass), but very sensitive to safety. At this time, lithium iron phosphate batteries were more suitable.
In order to improve the technical level of the industry, the subsidy policy in 2016 began to include battery system energy density in the assessment criteria: the mass energy density of the power battery system of pure electric passenger vehicles was set at a minimum threshold of no less than 90Wh/kg, and a subsidy of 1.1 times was given to battery systems above 120Wh/kg.
From the actual situation at the time, most lithium iron phosphate batteries were concentrated around 90Wh/kg, while ternary batteries generally exceeded 90Wh/kg, and many exceeded 120Wh/kg, and could get 1.1 times the subsidy.
Soon by the end of 2018, the share of ternary batteries reached 70%. It was also at this time that CATL, which bet on ternary batteries, began to rise, while BYD was a bit “invisible”.
However, with the improvement of battery chemical materials and packaging technology, and the arrival of the CTP 1.0 and 2.0 eras, the energy density of batteries has been rapidly improved. A representative model here is the Han EV launched in 2020, equipped with BYD’s blade battery, with a system energy density of 140Wh/kg, a battery capacity of 76.9kWh, and a NEDC range of 605km.
By 2024, lithium iron phosphate batteries will be able to meet most of the needs. CATL has also launched the Shenxing Battery PLUS (a lithium iron phosphate battery), with a system energy density of 205Wh/kg, a range of more than 1,000km, and support for 4C supercharging. At the same time, BYD’s second-generation blade battery is about to be released, and it is said that the energy density can reach 190Wh/kg. Lithium iron phosphate batteries can already meet most of the needs. When energy density is not a big problem, lithium iron phosphate has many advantages.
Overall, lithium iron phosphate has four major advantages: low cost, battery safety, long life, and inherently less prone to thermal runaway. Especially the cost, which is very critical at the moment when the price war is intensifying. Its disadvantages in energy density, SOC calibration, and low temperature performance have been compensated a lot with technological progress. From the development trend, the share of domestic lithium iron phosphate is expected to reach more than 80%. At present, the overseas market is still dominated by ternary batteries, but it is also slowly switching to iron lithium. At present, the exported battery ternary and lithium iron phosphate are basically 50:50. The development of overseas new energy vehicles is still several years behind that of China.
