LFP batteries use a lithium-ion-derived chemistry and share many of the advantages and disadvantages of other lithium-ion chemistries. However, there are significant differences.
Resource availability Iron and phosphates are very common in the Earth's crust. LFP contains neither
nickel nor
cobalt, both of which are supply-constrained and expensive. As with lithium, human rights and environmental
Cost A 2020 report published by the
Department of Energy compared the costs of large-scale energy storage systems built with LFP vs NMC. It found that the price per kWh of LFP batteries was about 6% lower than that of NMC batteries, and it projected that LFP cells would last about 67% longer (i.e., more cycles). Because of differences between the cell's characteristics, the cost of some other components of the storage system would be somewhat higher for LFP, but on balance it remains less costly per kWh than NMC. In 2020, the lowest reported LFP cell prices were $80/kWh (12.5 Wh/$) with an average price of $137/kWh, while in 2023 the average price had dropped to $100/kWh. By early 2024,
VDA-sized LFP cells were available for less than
RMB 0.5/Wh ($/kWh), while Chinese automaker
Leapmotor stated it buys LFP cells at RMB 0.4/Wh ($/kWh) and believe they could drop to RMB 0.32/Wh ($/kWh). By mid 2024, assembled LFP batteries were available to consumers in the US for around $115/kWh.
Better aging and cycle-life characteristics LFP chemistry offers a considerably longer
cycle life than other lithium-ion chemistries. Under most conditions, it supports more than 3,000 cycles; under optimal conditions, more than 10,000 cycles. NMC batteries support about 1,000 to 2,300 cycles, depending on conditions.
Viable alternative to lead-acid batteries Because of the nominal 3.2 V output, four cells can be connected in series for a nominal 12.8 V. This comes close to the nominal voltage of a six-cell
lead-acid batteries. Along with the good safety characteristics of LFP batteries, this makes LFP a good potential replacement for lead-acid batteries in applications such as automotive and solar applications, provided the charging systems are adapted not to damage the LFP cells through excessive charging voltages (beyond 3.6 volts DC per cell while under charge), temperature-based voltage compensation, equalisation attempts or continuous
trickle charging. The LFP cells must be at least balanced initially before the pack is assembled and a protection system also needs to be implemented to ensure no cell can be discharged below a voltage of 2.5 V or severe damage will occur in most instances, due to irreversible deintercalation of LiFePO4 into FePO4.
Safety One important advantage of over other lithium-ion chemistries is thermal and chemical stability, which contributes to improved battery safety. Especially compared to layered oxide cathode materials such as
lithium cobalt oxide () and
NMC, which release oxygen upon heating, LFP generally has higher decomposition temperatures.
Lower energy density The
energy density (energy/volume) of a new LFP battery as of 2008 was about 14% lower than that of a new battery. Since discharge rate is a percentage of battery capacity, a higher rate can be achieved by using a larger battery (more
ampere hours) if low-current batteries must be used. ==Uses==