Automotive Portable Lithium Iron Phosphate (LFP) Battery Market
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The global automotive portable lithium iron phosphate battery market size was valued at USD 10.7 billion in 2023 and is envisioned to grow at a CAGR of 16.8% by 2032. Due to their safety, long cycle life, and cost-effectiveness, LFP batteries are gaining demand among EV users. There is a growing number of major automakers who are adopting LFP batteries into their entry-level and mid-range EVs. LFP batteries have thermal stability, which makes them safer for usage in automobiles. The increasing focus on vehicle safety is leading to increased use of LFP batteries in car markets where regulations for battery safety are stringent.
There is a growing market for portable automotive power solutions such as portable jump starters and auxiliary power units. Other applications where LFP batteries are favored for their high-power output, durability, and overcharging and thermal runaway resistance. There is currently a push in the automotive industry to cut down LFP battery expenses by scaling production and improving manufacturing processes. This positive trend is making LFP batteries more accessible and competitive compared to other battery chemistries.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Automotive Portable Lithium Iron Phosphate Battery Market size in 2023: | USD 10.7 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2023 - 2032 CAGR: | 16.8 |
| 2023 Value Projection: | USD 44.18 Billion |
| Historical Data for: | 2021 - 2023 |
| No of Pages: | 100 |
| Tables, Charts & Figures: | 50 |
| Segments Covered: | Application |
| Growth Drivers: |
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| Pitfalls Challenges: |
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The shift towards greener practices has impacted the automobile sector, resulting in a higher interest towards LFP batteries. These batteries are more environmentally sound when compared with lithium-ion batteries, especially due to the employment of iron and phosphate which do less damage compared to the cobalt and nickel from other battery types. New strategies are emerging to further increase the energy density and overall efficiency of LFP batteries. For example, developments in electrolytes and new cell structures are helping increase the presence of LFP batteries in the automobile industry.
The automotive portable lithium iron phosphate battery industry for automotive portable LFP batteries can further be segmented into HEV and BEV based on usage. Additionally, by 2032, the BEV segment expected growth of more than 16.6%. For the lower and mid-tier electric vehicles, the demand for LFP batteries is becoming more pronounced, as such cars usually favor cost over enhanced features.
Thus, the LFP batteries have become a popular choice amongst manufacturers seeking to produce more safe, reliable and cheaper electric vehicles. Other than affordability, these batteries are more suitable for BEV applications due to their safety features such as thermal overload protection. This has given these batteries an edge when used in urban and compact BEV where less space is ideal, and safety becomes more important.
By 2032, the North America automotive portable lithium iron phosphate battery market is anticipated to exceed USD 17.9 billion. LFP batteries are gaining popularity in North America's electric vehicles (EVs), especially among entry and mid-range models. Their safety, affordability and long cycle life performance are the most convincing advantages. There is a concerted effort to establish LFP battery manufacturing in North America. This includes investments from automotive and battery companies in building production facilities and supply chains to cater to the increasing population of EVs.
China is the largest user of LFP batteries in electric vehicles (EVs). LFP batteries are generally used in many electric vehicles, especially in entry to mid-range EVs, owing to their safety, cost-effective, and longer shelf life. China is one of the largest manufacturing base for LFP batteries. Leading Chinese battery companies including CATL and BYD, have made significant strides in the market as they continue to develop and expand production.
Tesla has a strong position in the portable automotive portable lithium iron phosphate battery market as it has significant experience in the design and manufacture of various lithium-ion chemistries such as LFP and NMC. Over the years, Tesla has offered various battery technologies worldwide powered with his extensive experience ranging from energy storage systems, automotive vehicles, and many more.
Some of the major market players operating across the automotive portable lithium iron phosphate (LFP) battery industry are:
Market, By Application
The above information has been provided for the following regions and countries:
A123 Systems, LLC, Clarios, Contemporary Amperex Technology Co., Limited, Ding Tai Battery Company Ltd., Duracell, Inc., ENERGON, Exide Technologies, General Electric, and Hitachi Energy Ltd., among others.
North America automotive portable lithium iron phosphate (LFP) battery market is anticipated to reach USD 17.9 billion by 2032, due to their safety and local manufacturing investments for meeting growing EV demand.
The BEV segment in the automotive portable lithium iron phosphate battery market is expected to record 16.6% CAGR through 2032, due to their cost-effectiveness, safety, and durability.
The market size of automotive portable lithium iron phosphate battery was worth USD 10.7 billion in 2023 and is anticipated to register 16.8% CAGR between 2024 and 2032, due to their safety, long cycle life, and cost-effectiveness.