Complete Knowledge about LiFePO4 Batteries (LFP Lithium Iron Phosphate Battery)
Abstract Introduction of LiFePO4 Battery
Chemical Working Principle of LiFePO4 Battery

LiFePO4 Battery Structure and Composition
Chemical Reaction of Lifepo4 Charge and Discharge Process
Advantageous Features of Lifepo4 Batteries
High Energy Density
Reportedly, the energy density of square aluminum-cased LiFePO4 batteries produced in 2018 was around 160Wh/kg. In 2019, some excellent battery manufacturers were able to achieve levels of 175-180Wh/kg, and a few outstanding manufacturers using stacking technology and larger capacities were able to reach 185Wh/kg.
Good Safety Performance
The positive electrode material of LiFePO4 batteries has relatively stable electrochemical properties, which determines its stable charge and discharge platform. Therefore, the battery’s structure does not change during the charge and discharge process, and it does not burn or explode. Even under special conditions such as short circuits, overcharging, compression, or puncture, it remains very safe.
Long Cycle Life
The LiFePO4 battery generally achieves a 1C cycle life of 2000 times, and even exceeds 3500 times. For the energy storage market, a requirement of over 4000-5000 cycles is needed to ensure 8-10 years of service life, which is higher than the over 1000 cycles of the ternary battery and the approximately 300 cycles of the long-life lead-acid battery.
Synthesis of Lithium Iron Phosphate

Reportedly, the energy density of square aluminum-cased LiFePO4 batteries produced in 2018 was around 160Wh/kg. In 2019, some excellent battery manufacturers were able to achieve levels of 175-180Wh/kg, and a few outstanding manufacturers using stacking technology and larger capacities were able to reach 185Wh/kg.
Industrial Applications of LiFePO4 Batteries
Application in the New Energy Vehicle Industry
In China’s “Energy Conservation and New Energy Vehicle Industry Development Plan,” the goal is to achieve a cumulative production and sales volume of 5 million new energy vehicles by 2020, positioning China’s energy-saving and new energy vehicle industry among the world’s leading. Lithium iron phosphate batteries, known for their safety and cost-effectiveness, are widely utilized in passenger cars, buses, logistics vehicles, and low-speed electric vehicles. Despite ternary batteries dominating the current new energy passenger vehicle sector due to their energy density advantage driven by national subsidies, lithium iron phosphate batteries maintain an indispensable advantage in the bus and logistics vehicle fields. In 2018, lithium iron phosphate batteries accounted for approximately 76%, 81%, and 78% in the 5th, 6th, and 7th batches of the “Recommended Models for the Promotion and Application of New Energy Vehicles,” respectively, solidifying their mainstream status. In the special vehicle field, the proportion of lithium iron phosphate batteries in the 5th, 6th, and 7th batches of the “Catalog” in 2018 was approximately 30%, 32%, and 40%, with the application proportion gradually increasing. Academician Yang Yusheng of the Chinese Academy of Engineering believes that the use of lithium iron phosphate batteries in extended-range electric vehicle markets not only enhances vehicle safety but also supports the commercialization of extended-range electric vehicles, addressing concerns about the range, safety, price, charging, and subsequent battery issues of pure electric vehicles. Many car companies initiated extended-range pure electric vehicle projects between 2007 and 2013
Application in Starting Power
In addition to possessing the characteristics of power lithium batteries, lithium iron phosphate batteries for starting also have the ability to provide instantaneous high-power output. By using lithium batteries with energy consumption less than one degree of electricity to replace traditional lead-acid batteries and using BSG motors to replace traditional starter motors and generators, they not only have idle start-stop function but also have engine shutdown coasting, coasting and braking energy recovery, acceleration assistance, and electric cruise functions.
Application in the Energy Storage Market
LiFePO4 batteries offer unique advantages, including high operating voltage, large energy density, long cycle life, low self-discharge rate, no memory effect, and environmental friendliness. They also support seamless expansion and are suitable for large-scale energy storage. They have promising applications in safe grid-connected renewable energy power generation, grid peak shaving, distributed power stations, UPS power supplies, and emergency power systems.

According to the latest energy storage report by international market research firm GTM Research, the use of lithium iron phosphate batteries in grid-side energy storage projects in China is expected to continue growing through 2024. With the increasing prominence of the energy storage market, some power battery companies have been actively developing energy storage businesses to explore new application markets for lithium iron phosphate batteries. On one hand, the ultra-long life, safety, large capacity, and environmental friendliness of lithium iron phosphate will extend the value chain and promote the establishment of new business models in the energy storage field. On the other hand, lithium iron phosphate battery-matched energy storage systems have become the mainstream choice in the market. Reports indicate that lithium iron phosphate batteries have been utilized in electric buses, electric trucks, user-side and grid-side frequency regulation.
Application in Other Fields
Due to its good cycle life, safety, and low-temperature performance, LiFePO4 batteries have also been widely used in the military field. On October 10, 2018, a battery company in Shandong made a strong appearance at the first Qingdao Military-Civilian Integration Technology Innovation Achievement Exhibition, showcasing military products including -45°C military ultra-low-temperature batteries.
LiFePO4 Battery Energy Storage System (BESS)

rectified into DC power by the rectifier and then used to charge the energy storage battery modules to store energy. During the discharging phase, the energy storage system discharges to the grid or loads. The DC power from the energy storage battery modules is inverted into AC power by the inverter, and the inverter output is controlled by the central monitoring system to provide stable power output to the grid or loads.
Gradual Utilization of LiFePO4 Batteries
Generally, retired LiFePO4 batteries from electric vehicles still retain nearly 80% of their capacity, with 20% capacity remaining until reaching the 60% threshold for complete scrapping. These batteries can be used in applications with lower energy requirements than those of electric vehicles, such as low-speed electric vehicles and communication base stations, achieving the gradual utilization of retired batteries. Retired lithium iron phosphate batteries from vehicles still have high utilization value. The process of gradual utilization of power batteries is as follows: enterprise battery recovery - disassembly - testing and grading - classification by capacity - battery module recombination. With the level of battery preparation, the remaining energy density of retired lithium iron phosphate batteries can reach 60-90Wh/kg, and the secondary cycle life can reach 400-1000 cycles. With the improvement of battery preparation technology, the secondary cycle life may be further enhanced. Compared to lead-acid batteries with an energy of 45Wh/kg and a cycle life of about 500 cycles, retired lithium iron phosphate batteries still have performance advantages. Additionally, retired lithium iron phosphate batteries have low costs, only 4000-10000 yuan/tonne, making them highly economical.
World Yielding and Market Share of LiFePO4 Batteries
Market Share Growth in 2023
Lithium iron phosphate (LiFePO4) batteries reached a record market share.
In 2023, the cumulative installed capacity:
- Ternary batteries: 126.2 GWh (32.6% of total, 14.3% year-on-year growth)
- LiFePO4 batteries: 261.0 GWh (67.3% of total, 42.1% year-on-year growth)
LiFePO4 batteries have consistently outpaced ternary lithium batteries in market share since 2021 due to lower cost and higher safety. By 2023, LiFePO4 batteries accounted for over two-thirds of the market.

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