Due to Raw Material Price Hikes
TrendForce predicted in a report that LFP batteries will overtake ternary lithium batteries in market share from 2024. LFP batteries are mostly produced by Chinese companies, while Korean companies concentrate on ternary lithium batteries.
Global automakers have raised electric vehicle (EV) prices as the prices of minerals such as lithium, cobalt, and nickel have soared recently, and they will prefer LFP batteries due to a hike in raw material prices, said the report, which was published on April 19.
In 2021, LFP batteries’ global market share stood at about 32 percent to 36 percent, much lower than ternary batteries' more than 60 percent.
However, TrendForce estimates that LFP cathode materials will account for 64 percent of the 11 million tons of cathode materials that the global cathode material industry is planning to add.
In addition, as prices of key battery raw materials have surged since the second half of 2021 and the global battery supply chain has been hit by the Russia-Ukraine war and the COVID-19 pandemic, TrendForce expected that automakers will focus more on reducing raw material costs and securing a stable supply chain. Accordingly, it predicted that LFP batteries, which are cheaper than ternary batteries, will become the mainstream in the market within the next two to three years.
TrendForce predicted that the global ratio of LFP batteries versus ternary batteries will also change from 3 to 7 to 6 to 4 in 2024.