LFP and Graphite - IDTechEx Explores Li-ion Battery Technologies

LFP, LCO, NMC, and NCA are the main types of cathode materials used for Li-ion batteries explored by IDTechEx in the new report, "Li-ion Battery Market 2025-2035: Technologies, Players, Applications, Outlooks and Forecasts". Cathode materials play a large role in Li-ion batteries' performance capabilities and costs, so they are a significant component to consider. The report also covers anode materials such as graphite and key players within the market, offering insights and market outlooks over the next ten years.

 

 

Low cost and high availability are two of the main drivers for LFP adoption, increasing its share to 38% of the global cathode market in 2023 from 14% in 2019. Within the stationary energy storage sectors, LFP is becoming an increasingly popular battery chemistry, especially since its lower energy density is less of a critical characteristic compared to the benefits of its low cost. LFP cathodes are mostly produced and sold by Chinese companies, with production highly limited outside of China.

 

As the popularity of LFP continues to increase, IDTechEx expects the market to remain heavily reliant on Chinese producers, leaving it exposed to potential supply chain risks. Despite regions such as the US and Europe wanting to localize production to avoid this heavy reliance on one country, IDTechEx predicts that LFP production is likely to stay predominantly in China, meaning battery providers and OEMs may want to consider alternative cathode materials.

 

Higher energy densities could be another driving factor in the search for LFP alternatives. NMC was close behind LFP in holding an estimated 37% of the global share of the Li-ion cathode market and is more commonly used in European and US EV markets alongside NCA, due to their higher energy density. Materials such as Li-Mn-rich and high-voltage LNMO are being explored as alternative cathodes that can improve energy density compared to LFP, whilst keeping costs relatively low.

 

 

Graphite-based anodes are most common for Li-ion batteries and are split into two types - synthetic and natural. While natural graphite has been known for its lower cost, its performance capabilities don't quite match up to those of synthetic graphite, which in recent years has also seen prices drop, accounting for an increase in its popularity.

 

Lower CO₂ emissions are associated with natural graphite however, and with the increased demand for low-environmental impact products, its popularity could take over again, with IDTechEx stating that there will therefore continue to be demand for both types. As the majority of graphite anode production is controlled by Chinese players, battery manufacturers, and OEMs may again be exposed to supply chain risks, highlighting the importance of localizing some portion of the supply chain and exploring alternative materials and technologies.

 

 

IDTechEx reports positive growth of Li-ion batteries to be expected over the coming years, largely due to policy, technological improvements, and demand in major sectors such as the EV market and stationary energy storage. The Li-ion battery market saw rapid growth from approximately 50 GWh in 2015 to 1000 GWh in 2023. While growth in the EV market has slowed down in 2024, the outlook for Li-ion battery demand remains positive, highlighting the importance of continuing investment into the industry across different regions.

 

To find out more, please see the IDTechEx report, "Li-ion Battery Market 2025-2035: Technologies, Players, Applications, Outlooks and Forecasts". Downloadable sample pages are available for this report.

 

For the full portfolio of batteries and energy storage market research available from IDTechEx, please visit www.IDTechEx.com/Research/ES.

IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.