Lithium ion battery equipped with phosphate as a cathode offers safety to the battery and temperature stability leading to balance in short circuit and overcharge conditions. This is thus, surging lithium iron phosphate batteries usage across various applications. Lithium phosphate provides better electrochemical performance along with low resistance as compared to other available variants of lithium batteries. Benefits associated with use of lithium phosphate batteries includes improved battery performance, battery safety, internal cell balancing, less maintenance, low weight, high energy density, among others.
Owing to aforementioned benefits, lithium iron phosphate batteries usage in electric vehicles, power tools, .portable instruments, cell phones, laptops, small medical equipment is expected to witness surge in the next five to six years. Manufacturers across the globe are focused on developing new and advanced electrode materials in order to enhance applications of lithium iron phosphate batteries. Currently, lithium iron phosphate batteries are widely used in automotive industry. Batteries used in electric vehicles require long charging, high-performance, strong charging capabilities, which has led towards development of efficient batteries along with cost optimisation to the manufacturer.
Lithium Iron Phosphate Batteries Market Segmentation:
Lithium iron phosphate batteries market is segmented on the basis of application, voltage and region. On the basis of application, the segmentation includes electric vehicles, power tools, remote control cars, wind energy and storage equipment, lights, medical and portable equipment and consumer electronics. Electric vehicles segment is further segmented into big electric vehicles and light electric vehicles. Big electric vehicle segment includes buses, electric cars, hybrid vehicles, tour buses, and others. Light electric vehicles comprise golf carts, electric vehicle cleaning wheelchairs, small cars, electric bikes and others. Power tools segment includes electric saws, electric drills and others. In addition, consumer electronics segment is further sub-segmented into cell phones, camcorders, laptops and other devices.
On the basis of voltage, the market is segmented into up to 3.2 V, between 3.2V to 12 V, between 12V to 19 V and above 20V. Geographically, lithium iron phosphate batteries market is segmented into North America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Latin America, Japan and Middle East and Africa (MEA).
Lithium Iron Phosphate Batteries Market Dynamics:
Demand for less toxic electrode materials coupled with increased chemical stability and safety is anticipated to shift electric and hybrid vehicle manufacturers’ preference towards lithium iron phosphate batteries. With increasing demand for consumer electronics coupled with advantages such as faster charging time, light wright device, longer shelf-life and longer runtime has led manufacturers to opt for lithium iron phosphate batteries a battery option in these devices. Similarly, in case of electric vehicles, demand for cost efficient and improved batteries is fuelling the demand for lithium iron phosphate batteries across the globe. Moreover, increasing consumer concerns for greener and clean environment have led to change in preferences especially for vehicles. This has indirectly led towards adoption of electric vehicle as a mode of commutation, which is anticipated to further bolster the demand for lithium iron phosphate batteries in the near future.
Lithium Iron Phosphate Batteries Market Key players:
Some of the players in the lithium phosphate batteries market include Victron Energy B.V., BYD Company Limited, China Sun Group, Valence Technology, A123 Systems, LLC., Lithium Technology Corporation and K2 Energy among others. Players across the value chain are entering into strategic alliances especially for development of lithium iron phosphate batteries for hybrid and electric vehicles. Also, companies are engaged in enhancing their product lines to meet the growing demand for these batteries.