With EVs currently more expensive than traditional internal combustion engine cars, largely due to the high cost of batteries, the quest for more affordable and efficient batteries is becoming ever more essential. One of the most promising advancements in this space is the adoption of Lithium Iron Phosphate (LFP) batteries. With LFP batteries offering benefits to traditional battery chemistries including cost efficiency, longevity and improved safety, how can LFP technology drive down costs and transform the EV battery landscape?
The Rise of LFP Batteries
Over the past few years, LFP batteries have emerged as a significant development in the EV industry. While traditionally, other battery chemistries, including NMC, have dominated the market, their production cost and need for lesser-available materials has led to LFP batteries offering a compelling alternative. Indeed, by using iron and phosphate, which are abundant and cheaper than the cobalt and nickel needed for other chemistries, this shift reduces material costs while mitigating supply chain risks associated with the scarcity and geopolitical tension surrounding their mining.
LFP Technology Specs
LFP technology offers a range of benefits over traditional lithium-ion batteries that make them an attractive option for EVs, particularly in terms of performance and safety.
LFP Performance
LFP batteries perform better in extreme temperatures, both high and low, providing increased thermal and chemical stability, which makes them safer and more reliable. Furthermore, while LFP batteries have a 30% to 50% lower energy density compared to alternative battery technologies such as NMC, their higher thermal tolerance significantly reduces the risk of thermal runaway, a major safety concern in other chemistries.
Increased Safety
In addition to an increased performance, LFP batteries are considered to be safer than other battery chemistries due to their mechanical advantages. Indeed, LFP batteries boast a longer lifetime, typically lasting between 3,000 to 5,000 cycles, with the potential to reach up to 7,000 cycles with opportunity charging.
Reducing EV Costs with LFP Batteries
LFP batteries present a significant cost advantage for EVs due to the nature of their materials and manufacturing processes. Indeed, with the initial system integration cost being up to 15% cheaper, LFP batteries tend to be on average 32% cheaper in cost per $/kWh compared to other chemistries. This cost efficiency is further enhanced by the ability to place LFP cells closer together, saving approximately 15% in space. Although the lower energy density of LFP batteries requires more cells to achieve the same kWh, an LFP pack typically saves about 15% in volume and only loses around 15% in energy density compared to an equivalent NMC pack. As a result, the overall cost difference to produce the same kWh per pack is reduced by about 5%, making LFP batteries a cost-effective solution for the growing EV market.
Ford’s Cost-Effective EV Plan
In the case of Ford, the price of the EV version of its popular F150 pickup starts at just under $55,5000 and reaches over $92,000. Therefore, the majority of the consumers who were planning on buying one have done so, leaving a less strong demand for such models. Hence, the American car manufacturer is in the process of developing what it says will be a profitable $30,000 EV to be released in 2027. Indeed, the OEM admitted that big changes must be made for EVs to become profitable.
Moreover, Ford’s largest models, including the Super Duty vehicles, need massive battery packs to attain the significant EV ranges of 500 miles. Indeed, their battery alone costs up to $50,000. As a result, earlier this year, Ford delayed a new, full-sized electric SUV for North America as the manufacturer is expected to lose more than $5.5 billion on battery-powered models in 2024. Therefore, introducing cheaper EVs is a priority for Ford, as it aims to achieve a profitable electric portfolio.
Making Further Reductions and Increasing Efficiency with Addionics’ 3D Current Collectors
With the EV industry aiming to reduce manufacturing costs and EV retail prices, there is more interest for EV manufacturers to adopt LFP batteries due to their adapted characteristics. By combining LFP battery technology with Addionics’ 3D Current Collectors, these benefits are made even greater with the 3D design. Indeed, though LFP batteries have a lower energy density than other battery chemistries, mainly due to a smaller amount of active material, Addionics’ 3D Current Collectors can change this. With its 3D design, the amount of active material embedded is increased at the same time as the amount of inactive material is reduced. This increases the energy density while simultaneously reducing cost per KWh.
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