Greater demand for LFP batteries to present opportunities
Tesla's recently unveiled plan to power its standard-range electric vehicles (EV) with lithium iron phosphate (LFP) cathode batteries is set to benefit Korean battery makers by opening new opportunities in the market, with other major automakers expected to follow suit.
LFP chemistry batteries, produced by Chinese manufacturers such as CATL and BYD, currently account for a little more than 10 percent of the market for EV batteries.
Research and consultancy group Wood Mackenzie forecast the LFT-type battery could account for up to 30 percent of the entire battery market. However, there are contrasting views in the industry _ that high-nickel batteries will take up the lion's share of the market in the coming years.
The LFP chemistry is able to keep battery prices low, as costs of the material are cheaper than that of nickel, cobalt and manganese (NCM) or nickel, cobalt and aluminum (NCA) batteries. LFP batteries are around 20 percent cheaper than the other high power cells. Plus, LFP batteries are stretchable and considered to be quite stable compared to NCM-based batteries in terms of potential fire risks.
Their largest challenging factor, however, is a shorter travel distance, which means they need to be recharged more often.
Tesla aims to maintain its leadership in the rapidly-growing EV market and it truly does make sense for the iconic U.S. EV maker to diversify its vehicle lineup from premium to budget...
Read Full Story: https://m.koreatimes.co.kr/pages/317689.html?gosh
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