China’s Gotion Predicts LFP Batteries Will Dominate Global EV Market

Gotion High-Tech

Chinese battery producer Gotion High-Tech forecasts that lithium-iron-phosphate (LFP) and lithium-manganese-iron-phosphate (LMFP) batteries will claim up to 70% of the global electric vehicle (EV) battery market in the next 2-5 years. Speaking at the ASEAN Battery Technology Conference in Singapore, Gotion’s Asia-Pacific president Cheng Qian highlighted the rising prominence of LFP chemistry, particularly in affordable EVs and energy storage systems.

The Rise of LFP Batteries

Qian projected that LFP batteries will dominate not only the global EV market but also the entire energy storage system (ESS) sector, exceeding even the IEA’s 80% forecast. He attributed this growth to advancements in LFP battery range and faster charging times, catering to the needs of everyday EV consumers. In contrast, nickel-cobalt-manganese (NCM) batteries are expected to remain essential only for high-performance and long-range EVs.

This shift has placed pressure on the nickel market, as manufacturers pivot to cost-efficient LFP solutions. South Korean giants such as Samsung SDI and SK On are preparing to mass-produce LFP batteries by 2026. Meanwhile, LG Energy Solution (LGES) has committed to supplying 39GWh of LFP batteries to Renault's EV division Ampere, underscoring Europe’s growing focus on LFP technology.

Two-Wheeler EV Transition in Asia-Pacific

The two-wheeler EV market, particularly in Asia-Pacific, is also expected to transition from NCM to LFP batteries. India, Indonesia, and the Philippines are leading this shift due to cost concerns and government initiatives.

• India: Achieved record EV sales in FY2023-24, with two-wheeler EV sales rising 30% year-on-year to 944,126 units.
• Indonesia: Aims for 2 million electric motorcycles by 2025, supported by a $458 million subsidy program launched in March 2023.
• Philippines: Targets a 50% electric motorcycle and tricycle share by 2030, with cost efficiency driving adoption.

A Global Shift in Battery Technology

With its affordability and sustainability, LFP battery technology is reshaping the global EV landscape, especially in cost-sensitive markets. Companies like Gotion, LGES, and Samsung SDI are at the forefront of this transformation, signaling a shift towards accessible and efficient energy solutions.