In a remarkable shift, the once-dominant Li-ion batteries are losing their appeal as the spotlight turns to the burgeoning era of LiFePO4 lithium iron phosphate batteries in the electric vehicle (EV) industry. The surge in global EV sales has been undeniable, with China witnessing a staggering 89% increase in new energy passenger car sales, reaching 5.66 million units in 2022 compared to the previous year.
This EV boom has not only propelled the market share of electric vehicles globally but has also significantly impacted the entire power battery industry. LiFePO4 and Li-ion batteries have emerged as the leading technologies in power batteries. Despite Li-ion batteries dominating production and installations over the past few years, a series of EV-related safety incidents has prompted consumers to reevaluate battery safety.
In a surprising turn of events, LiFePO4 batteries have surged ahead, claiming a substantial market share. In June 2019, Li-ion batteries accounted for over 70% of China's battery installations, while LiFePO4 held a modest 27% share. Fast forward to August 2022, and the tables have turned, with LiFePO4 batteries securing 62% of the market share, while Li-ion batteries have dwindled to 38%.
This dramatic shift can be attributed to two main factors. Firstly, advancements in LiFePO4 battery performance have narrowed the gap with Li-ion batteries. Optimizations in design and structure have significantly increased the energy density of LiFePO4 batteries, enabling new energy vehicles equipped with these batteries to achieve over 500km of range. Pioneering this shift is BYD, which has been a staunch advocate of LiFePO4 batteries since 2005 and has introduced further refinements like the "blade battery" based on LiFePO4 materials.
Secondly, consumer priorities have shifted from a sole focus on performance to a greater emphasis on battery safety. LiFePO4 batteries inherently boast superior safety, long cycle life, low self-discharge rates, and no memory effects. BYD's "blade battery" technology, enhancing energy density while ensuring robust safety, aligns with this consumer trend. BYD has even boldly declared its intention to eliminate "spontaneous combustion" from the vocabulary of electric vehicles.
The popularity of electric cars has also extended to the market for self-driving and camping, where energy storage is essential. CTECHI, a leading brand in the energy storage industry, has embraced LiFePO4 batteries, adopting automotive-grade standards and optimizing internal structures for maximum safety. This not only caters to outdoor leisure activities but also serves home energy storage, emergency preparedness, and tool operations. Additionally, these batteries offer a convenient emergency charging solution for electric vehicles.
In a recent development, industry insiders suggest that LG Energy Solutions, the world's second-largest power battery manufacturer, might be developing LiFePO4 soft pack batteries for Tesla. The LiFePO4 era seems poised to dominate. What are your thoughts?
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