The global lithium iron phosphate battery market was valued at USD 18,7 billion in 2024 and is expected to witness a CAGR (Compound Annual Growth Rate) of 16,9% through 2034, driven by the global shift towards EVs (electric vehicles). The data is from GMI (Global Market Insights).
ive government policies, stricter emissions regulations and advances in EV charging infrastructure are bolstering the adoption of these batteries, especially in regions such as Asia-Pacific and Europe.
Furthermore, according to the company, the increase in renewable energy projects has fueled demand for LFP batteries in storage applications. “Their safety – currently the safest – good energy capacity and cost-benefit make them suitable for both on-grid and off-grid hybrid systems,” highlighted Silvio Robusti, Product Marketing Manager at Growatt Brazil.
Growatt has also adopted LFP batteries in all of these applications, standing out for their efficiency and versatility. “To give you an idea, we have customers who have installed on-grid hybrid systems in their homes and, due to the excellent performance of the batteries, want to expand the system to include more loads,” explained Robusti.
“For example, if the air conditioning was not previously powered by the battery, the customer can expand the system and integrate the device as well. This expansion is extremely simple, as our systems are modular,” highlighted the specialist.
Furthermore, he emphasized the reliability of Growatt’s LFP batteries compared to traditional lead-acid batteries. “If one of the battery modules fails, the system will continue to operate normally, as the control is per module.”
“On the other hand, with systems with more than one lead-acid battery, the failure of one battery compromises the entire system. For greater safety, we use low-voltage batteries in residential applications and high-voltage batteries for C&I (commercial and industrial) projects,” he concluded.
LFP Battery Market Trends
According to GMI, LFP batteries are increasingly being used in industrial environments for automation and process optimization. This includes applications that require high durability and reliability.
Innovations in electrode materials and design aim to improve energy density and recharge speeds without compromising battery life. “Industries are increasingly turning to LFP batteries for their energy storage needs due to the batteries’ high battery life, durability and safety.”
“These batteries are commonly used in automated systems and in backup power solutions for critical systems. Their low maintenance requirements and ability to provide consistent power output in demanding environments make them the preferred choice for industrial use,” they said.
Market analysis
Global Market Insights further emphasized that the stationary application is expected to reach USD 18,6 billion by 2034. “The growing global focus on reducing greenhouse gas emissions has led to an increase in renewable energy installations such as solar and wind.”
“These energy sources require efficient storage systems, positioning LFP batteries as a preferred choice due to their efficiency. Governments and private entities are investing heavily in energy storage projects to integrate renewables into the grid,” they noted.
USA and Asia-Pacific
The U.S. lithium iron phosphate battery market is expected to exceed $29,5 billion by 2034. The U.S. government and private entities are investing in domestic battery manufacturing to reduce dependence on foreign imports and increase supply chain resilience. New facilities and partnerships are emerging to the production and deployment of LFP and other lithium-ion batteries.
Meanwhile, the Asia-Pacific LFP battery market is growing rapidly, driven by rising demand for electric vehicles and stationary energy storage systems, as well as the increasing use of these batteries in other applications such as medical equipment and power tools.
“The main drivers of this growth include technological advances, strategic investments by global companies in the region and the increasing adoption of renewable energy solutions,” they added.
Automotive market
According to the company, the automotive segment is expected to expand at a CAGR of over 15,8% through 2034. LFP batteries are gaining traction in electric vehicles due to their lower cost, improved safety, and longevity compared to NMC (Nickel Manganese Cobalt) batteries.
“These attributes make them particularly attractive for fuel-efficient EVs and fleet vehicles. Companies such as Tesla, Ford and Volkswagen are increasingly incorporating LFP batteries into their electric vehicle lineups, expanding their presence in Western markets traditionally dominated by NMC batteries,” they reported.
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