Portable Lithium Iron Phosphate (LFP) Battery Market Size – By End Use, Analysis, Share, Growth Forecast, 2025 – 2034

Portable Lithium Iron Phosphate Battery Market Size

The global portable lithium iron phosphate battery market was estimated at USD 15.5 billion in 2024 and is expected to reach USD 70.3 billion by 2034, growing at a CAGR of 16.9% from 2025 to 2034. Portable lithium iron phosphate (LFP) batteries are rechargeable battery. These batteries can be used in EVs and portable renewable energy storage systems. The shift from conventional energy sources to a more renewable energy system is further opening the portable LFP market. For reference, the green energy generation was recorded around 560 GW in 2023 and is expected to cross 5200 GW between 2024 to 2030.
 

Moreover, the increasing investment potential in renewable energy sector by different countries is expected to increase the demand for lithium iron phosphate batteries. For instance, in 2024, Australia registered 9 billion investment for generating renewable energy of around 23 GW and battery of around 9GW. Additionally, EV sales owing to the price reduction in emerging economies such as China and India. For instance, global sales of EV in 2024 crossed 17 million units a 25% growth from 2023 EV sales. Owing to its high energy density, lightweight design and longer life-period of the battery makes portable lithium iron phosphate battery an ideal choice for EVs.
 

As the portable lithium iron phosphate batteries are widely used various government authorities have established favorable policies to further bloom the demand for portable LFP batteries. For instance, in 2025 budget announcement, Indian government removed tariff on waste and scrap of critical minerals including lithium battery waste. Similarly, to promote more indigenous lithium battery development, India has extended capabilities of their research and innovation facilities with the help of funds and technology transfer. For example, the government of India introduced program ‘Mission LiFE’ under which authorities transferred value-effective technology of recycling lithium-ion to startups and recycling firms. Additionally, the Department of Science and Technology started supporting 32 projects for battery storage.
 

Portable Lithium Iron Phosphate Battery Market Trends

The portable lithium iron phosphate battery industry reached USD 11 billion, USD 13 billion and USD 15.5 billion in 2022, 2023 and 2024 respectively.
 

The lithium iron phosphate (LFP) battery has been observing positive trend owing to several benefits over other lithium-ion batteries. Further convenience of portability the portable LFP battery market has been observing remarkable positive growth. In addition, rising demand of non obstructed energy demand will increase battery demand for ESS. For reference, in 2023 the ESS demand crossed 135 GWh and is predicted to exceed 838 GWh by 2033.
 

This is encouraging several advances initiations in the industry. One of these advances being use of flexible, compressible reduced graphene oxide as a lithium deposition substrate. Another next-generation technology “nanotechnology” to improve energy density and shelf life of the batteries. Solid-state LFP batteries being one of these innovations in the field. The technology aids faster charging times, higher energy density and better safety in response to risk of leaks and fire.
 

Adoption of hi-tech such as artificial intelligence (AI) and machine learning (ML) in lithium battery designs is another trend shaping the market in focus. AI can help to enhance the performance and safety of batteries. ML can offer real-time monitoring of lithium-ion batteries that provides result on battery’s thermal management, charging and overcharging status, current status, life period of battery. Such technological adoption further enhances production and performance of lithium-ion battery.
 

Similarly, advancement in lithium iron phosphate (LFP) battery manufacturing and recycling process is driving the demand for lithium batteries including portable LFP batteries. Owing to rising environmental concern cost-effective recycling methods are significantly adopted. For instance, in January 2025, Ace green recycling firm introduced LithiumFirst technology a hydrometallurgical recycling method for LFP battery recycling at room temperature. This would help to smoothen supply of lithium mineral and availability of mineral.
 

Moreover, owing to the unprecedented demand of LFP batteries, players in the field have improved their production capacity and pinned down a neat supply network; thus reducing prices of lithium iron battery. For instance, in 2024, Tesla announced possibility of cost saving in LFP battery manufacturing by USD 2000 in 2024 as compared to 2023 production cost. All these factors are significantly enhancing the market growth of portable lithium iron phosphate (LFP) battery globally.  
 

Portable Lithium Iron Phosphate Battery Market Analysis

The LFP battery uses iron phosphate for its cathode. The battery provides enhanced energy density, longer shelf life of battery and improved operation. These batteries are majorly used in EVs, portable electronics, grid energy storage systems. Due to these factors various American companies including Tesla, and Ford recently invested into LFP production facility. These batteries offer longer charge and discharge cycle when compared with traditional lithium-ion battery, thus proving itself to be more eco-friendly choice.  
 

• Furthermore, various innovation and adoption of sustainable materials into cathode development to deflect the risk of environmental concerns and risk of energy loss. The sustainable batteries further cater to zero carbon emission objective of companies.
   
• Owing to high demand for lithium-ion batteries from different users such as automakers, consumer electronics, various companies and researchers have initiated to invest prominently to develop new technologies and are currently in early stages.  
   
• Along with as compared to NMC and other lithium batteries LFP is affordable due to low usage of lithium mineral that cost highest when manufacturing LFP batteries. In September 2024, cost of LFP battery dropped to around USD 55-60/KWh.
   

The portable lithium iron phosphate battery market by end use is segmented into Industrial and Automotive. The automotive segment accounted for over 82.1% market share in 2024.
 

• Due to rise in introduction of EV due to rising adoption of ecologically friendly transportation and supportive government policies in the field, the lithium-ion battery market is expected to witness higher demand from automotive application segment.
   
• For instance, in 2023, beyond 13.2 million of electric cars were purchased worldwide showcasing 33% YoY growth. Thus, reaching 40 million total number of electric cars on road by end of 2023.
   
• Rising disposable income and growing adoption of portable consumer electronics the demand for portable lithium iron phosphate (LFP) batteries are similarly rising. LFP batteries are considered ideal choice in consumer electronics, due to their compact and lightweight design and longer charge-discharge cycle.
   
• Owing to increasing demand for metals such as iron, industrial minerals and other metals. For instance, in October 2024, government of the U.S. initiated construction of a lithium mine in Silver peak range at Nevada.
   

• The U.S. portable lithium iron phosphate battery market reached USD 3.4 billion, USD 4billion and USD 4.8 billion in 2022, 2023 and 2024 respectively. US is expected to witness high EV growth and growing adoption of renewable energy systems and gird renovation. These factors will aid the growth of portable lithium iron phosphate (LFP) battery market in North America.
   
• Similarly, stronghold of manufacturing base, growing usage of EVs, rising deployment of renewable energy system and cost-effective sourcing of raw materials owing to favorable government policies the regional market is witnessed to account highest growth rates in forecasted period.
   
• For instance, in January 2025, China’s ministry of commerce announced restriction on export of battery materials such as lithium, battery and battery technology. Similarly, Chinese government announced extension of its NEV tax reduction and exemption rule until 2027.
   

Portable Lithium Iron Phosphate Battery Market Share

Top 5 companies including CATL, BYD, Clarios, Exide and LG electronics held a market share of over 40% in 2024. Many market players are operating in portable lithium iron phosphate (LFP) battery market and players are working to develop cost-effective and wide volt range portable LFP batteries.
 

Among these companies CATL is one of the largest share holding company in the industrial lithium-ion battery market. Owing to its vast product offerings, widespread of geological clientele and strategic partnership with various auto manufacturers such as BMW, Volvo, and Ford. The demand for portable LFP battery is expected to boost as the electric vehicle industry constantly grow, especially in emerging countries such as China, and India.
 

Furthermore, supportive government regulations in the developing and developed countries and affordable labor cost further decreases prices of batteries and aids strong uphold of market in the cost-sensitive group of consumers. Other major companies including BYD, Clarios, Exide and LG electronics are also poised to target significant share of the market in focus, particularly in cost-sensitive electric vehicles target group and energy storage systems sectors.
 

Portable Lithium Iron Phosphate Battery Market Companies

• CATL is a Chinese battery manufacturers. The company holds significant market share in lithium-ion battery market. The company registered around 20% to 23% revenue growth in 2023 crossing USD 54 billion. Its recent strategies such as battery swapping and subscription based price models will enhance their objective of circular economy and rise in EV adoption.
   
• Clarios a fully own subsidiary of "Brookfield Business Partners" an American battery making company. Clarios recorded nearly USD 10.6 billion year end revenue in FY 2024. The company announced plan of investment in ecological battery development and significant recycling of batteries further increases company's income.
   
• LG Electronics a Japan based subsidiary of LG, operates in various electronics including lithium-ion batteries, which witnessed revenue of USD 60.7 billion in 2023. Its recent strategies of mass production of semi solid batteries and launch of new lithium batteries for new application range i.e., energy storage system to expand the clientele and reduce revenue dependence on EV. The company has also invested in startup manufacturing lithium batteries based in the U.S.
   
• BYD (Build Your Dreams) is a Chinese multinational company with global presence in both electric vehicles (EVs) and battery building. The company registered a revenue of USD 27.7 billion in Q3, 2024. Recently the company announced launch of its next-generation Blade Battery in 2025. The battery improves battery functioning that will boost its range and performance.
   
• Exide Industries is a Indian battery manufacturing company. The company registered approximately USD 1946 million in 2023. The company’s recent investment of more than USD 100 million in its lithium-ion battery manufacturing facility in India for FY 2025.
   

Some of the key players operating across the portable lithium iron phosphate battery market are:

• A123 Systems
• Clarios
• Contemporary Amperex Technology
• Ding Tai Battery Company
• Duracell
• ENERGON
• Exide Technologies
• General Electric
• Hitachi Energy
• Koninklijke Philips
• LG Energy Solution
• LITHIUMWERKS
• ProLogium Technology
• Saft
• Tesla
   

Portable Lithium Iron Phosphate (LFP) Battery Industry News

• In July 2024, LG successfully secured partnership for the supply of LFP batteries with automaker Renault EV division. The agreement consists of supply of LFP batteries for 590,000 over five years.
   
• In April 2024, CATL launched one of its kind of 4C superfast charging LFP battery “Shenxing Plus” for range over 1000 km. The battery uses granular gradation cathode technology which will help increase energy density and battery durability.
   
• In October 2024, Lithium Werks a subsidiary of reliance industry has fully acquired Faradion a sodium-ion battery technology maker based in UK. The parent company also expect to start manufacturing at its battery gigafactory with annual capacity of 30GW.
   
• In October 2024, Exide Technology an established battery manufacturer launched its next generation lithium iron phosphate battery for material handling fleets. The product offers enhanced safety, reliability and total cost of ownership.
   
• In September 2024, Clarios announced partnership with Europe based commercial truck manufacturer for the development of 24 volt lithium ion batteries for heavy duty application range. The new battery is expected to reduce its downtime and enhanced functioning of batteries.
   
• In March 2024, Panasonic unveiled joint venture with Indian Oil Corporation Ltd (IOCL) to manufacture cylindrical lithium-ion batteries. The batteries are majorly used in consumer electronic devices, EVs, and power tools.
   
• In October 2024, Exide Technology an established battery manufacturer launched its next generation lithium iron phosphate battery for material handling fleets. The product offers enhanced safety, reliability and total cost of ownership.
   
• In March 2024, Panasonic announced joint venture with Indian Oil Corporation Ltd (IOCL) to develop cylindrical lithium-ion batteries. The product are majorly used in consumer electronics, EVs, and power tools.
   
• In March 2022, RNEL (Reliance) acquired Lithium Werks a LFP battery manufacturer for USD 61 million. The acquisition include 219 patents of the company, manufacturing base in China, business contracts and hiring of existing employees.
   

This portable lithium iron phosphate battery market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By End Use

• Industrial
  • Military
  • Medical
  • Marine
  • Others
• Automotive
  • HEV
  • BEV

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina