The lithium iron phosphate battery (LiFePO4 battery) or LFP battery (lithium ferrophosphate) is a type of lithium-ion battery using lithium iron phosphate (LiFePO4) as the cathode material, and a graphitic carbon electrode with a metallic backing as the anode.
Prismatic Cells are the superior type of Lithium cell for uses in any battery that is in a non-stationary environment. Because of lower cost, high safety, low toxicity, long cycle life and other factors, modern prismatic cells are used in the electric powertrain and energy storage systems. As of Q1 2021, LFP type battery market share reached 24.1%, with Chinese manufacturers holding a near monopoly, and is expected to rise further to surpass NCM type batteries in 2028.
Prismatic LiFePO4 batteries are used in power banks, laptop battery-packs, electrical vehicles, and flashlights. The battery safety circuits along with LiFepo4 batteries are sealed in a container and designed to prevent any damage to the battery pack by external factors such as ambient temperature, battery chemistry and cycling. The prismatic LiFePO4 market has witnessed growth due to the battery’s high stability and performance along with an ecofriendly and safety profile. Also, Lithium iron Phosphate material exhibits properties such as thermo-resistance capability, high stability under extreme conditions, and eco-friendly profile, which in turn, has propelled the adoption of this material in battery applications.
Product reliability and cost-effectiveness are major factors driving growth of the prismatic LiFePO4 battery market. Furthermore, increasing cost-efficiency in various production processes such as electrode coatings, cell assembly, formation, and process control is expected to boost growth of the prismatic LiFePO4 battery market over the forecast period. Electrode coating is gaining significant traction due to its benefits such as flexible and fast control on coating systems, as well as simple and safe integration of quality measuring systems, and fewer rejects due to automatic roll change during operation. Additionally, electrode coating technology and process development have a strong impact on quality, performance, and safety of the assembled battery cells.
Prismatic batteries are used as power banks for electrical vehicles in various electrical and automotive sectors. Government bodies in various countries are focusing on supporting the R&D activities for advanced batteries through the Department of Energy (DOE). According to United States Department of Energy, the U.S. government is providing around US$ 2 billion worth grants to accelerate the manufacturing and development of the next generation prismatic batteries in the automotive sector (power banks and laptops) and electrical vehicles. Prismatic batteries are suitable for a wide range of applications such as stationary to mobile, consumer to industrial, and can be optimized to provide high energy and high power.
The major factor restraining growth of the market is substitution of products such as pouch cell battery, button battery and cylindrical battery. The energy density (energy/volume) of a new LiFePO4 battery is somewhat lower than that of a new lithium cobalt oxide battery (14% reduction in energy density). Furthermore, Lithium ion batteries have low discharge rate compared with lead-acid batteries or cobalt oxide batteries.
The prismatic LiFePO4 battery use in energy storage has the highest growth rate in overall market due to increasing adoption for energy storage technologies. The batteries are used as an energy source in large electric and hybrid vehicles like buses, delivery vans, heavy industrial machines and ships.
Major players are incorporating various strategies such as joint ventures and capacity expansions to achieve market growth. Being the leader in Lithium Ion Battery Business in India, Semyung India fulfill the needs of Li-Ion Battery R&D organizations, Research Institutes & Manufacturers. Semyung India is committed to introduce new technology solutions of Li-ion Battery Pack Systems with the strategic partnership of Samsung SDI for various existing applications that are using Lead Acid Batteries. In 2018, Panasonic Corporation commenced operations of new 5-GWh plant in Dalian for the development of prismatic batteries exhibiting high safety and capacity for applications in the automotive sector, distributing them to markets in North America and China.
The global prismatic LiFePO4 battery market is characterized by high presence of players. Some of the major players operating in the prismatic LiFePO4 battery market are Panasonic Corporation, Toyota Motor Corporation, HYB Battery Co., Ltd., Contemporary Amperex technology (CATL), and LG Chemical Ltd.