LFP batteries are booming: 70% market share in EVs and storage systems

Cell Chemistry LFP Cells Increasingly in Demand

2026-07-06 By Holger Holzer/SP-X | Translated by AI 1 min Reading Time

Chinese automakers adopted LFP batteries early on. In the meantime, the cost-effective material has established itself in many areas.

The Renault Mégane is also available with an LFP option since the facelift.(Image: Renault) — The Renault Mégane is also available with an LFP option since the facelift.
(Image: Renault)

LFP batteries are increasingly being used in electric cars and stationary storage systems due to their cost-effectiveness. According to data from the Korean market research firm SNE Research, in 2025, over 70 percent of the cathode materials delivered worldwide for lithium-ion batteries were LFP (lithium iron phosphate). The previous year, the share had been nearly 65 percent. Competing materials like NMC (nickel, manganese, cobalt) and NCA (nickel, cobalt, aluminum) together accounted for 28 percent of the market last year.

LFP cells are cheaper and thermally more robust but have a lower energy density than many nickel-manganese-cobalt cells. As a result, they are most commonly used in more affordable electric cars with shorter ranges. Chinese manufacturers are already extensively using LFP, while Western carmakers are increasingly adopting it in entry-level models. However, the LFP boom is not solely driven by electric cars. SNE points to the rapidly growing market for stationary battery storage, for example, related to the rising electricity demand of data centers.

According to SNE Research, nearly five million tons of cathode material were delivered in 2025, 34 percent more than the previous year. Demand was nearly 4.8 million tons, 42 percent higher than the previous year. LFP accounted for almost 3.5 million tons. The largest supplier across all chemistries was Hunan Yuneng with 1.14 million tons.

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Date: 08.12.2025

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