Han Media: Lithium Iron Phosphate Batteries, the Key to the Popularization of Electric Vehicles!
On July 24, South Korean media "Herald Economic" published an article stating that in the 2020s, the electric vehicle industry has reached a new crossroads. The electric vehicle market, which has been highly noticed and developed rapidly as an environmentally friendly transportation tool, has seen its growth rate slowed down in recent years due to factors such as global interest rate increases, economic slowdowns, and reduced government subsidies.
This change once again highlights the high price issue of electric vehicles, making reducing battery costs an important topic. Under this trend, although lithium iron phosphate (LFP) batteries have lower energy density than existing NCM batteries, they are receiving significant attention as a strong alternative option due to their low price and excellent stability.
The rise of LFP batteries is not just a simple technological change, but a major transformation that reshapes the structure of the electric vehicle industry. In 2010, BYD of China was the first to apply LFP batteries to its electric vehicle e6, establishing its leading position in the electric vehicle field. However, the market leadership eventually fell into the hands of a later entrant, CATL. This was due to strategic differences.
BYD adhered to its vertical integration strategy, supplying batteries only for its own brand cars, while CATL obtained European quality standards through cooperation with BMW and quickly expanded its market through cooperation with multiple global automobile manufacturers. Therefore, by 2025, CATL held a 38.4% market share of Chinese LFP batteries, surpassing BYD (28.8%), and taking the top spot in the Chinese LFP battery market.
Korean battery companies are also actively responding to this trend. LG Energy Solution plans to mass-produce LFP batteries from the second half of 2025, while SK On has already started building an LFP battery factory for the North American market. Samsung SDI, on the other hand, is pursuing a differentiated strategy, focusing on developing LMFP batteries with performance higher than LFP batteries. Although Korean companies entered the market later, the strengthening of Chinese battery regulations in North America and Europe may bring them new opportunities.
The popularity of LFP batteries is not just a choice to reduce costs, but also a phenomenon indicating a shift in the leadership of the electric vehicle industry. LFP batteries are emerging as an optimized solution for the mass-market electric vehicle market, gaining momentum due to their price competitiveness, safety, and sustainability, and are expected to further accelerate the popularization of electric vehicles. To ensure the competitive advantage of Korean companies in this market, it is necessary to seize the opportunity to enter the market, establish strategic partnerships with global automobile manufacturers, and continuously increase R&D investment. Additionally, it is necessary to take a proactive approach to next-generation technologies such as all-solid-state batteries and LMFP.
The electric vehicle industry is evolving from a simple environmentally friendly transportation tool into a complex industry integrating energy, manufacturing, and technological innovation. The rise of LFP batteries is just the beginning of this larger transformation, and how Korean companies accept and respond to this transformation will determine the leadership position in the battery industry.
Original: https://www.toutiao.com/article/1838508661339212/
Statement: The article represents the personal views of the author.