Application Watch: LFP batteries lead Li-ion category in renewable energy market

Environmental concerns have accelerated the development of renewable energy sources and corresponding storage solutions. Harnessing energy from the sun and wind is a viable alternative now, and the popular technology for storage and conversion to usable power is also green, Li-ion batteries.

Up to 300GW solar power systems will be installed worldwide by 2025, with total capacity reaching as high as 1,900GW, according to BloombergNEF. Wind power, expected to have 70GW in place annually, will have an aggregate capacity of 1,000GW in the same year.

In China, the same upward trend is happening. Wind and solar sources delivered respectively 5.7 percent and 3.1 percent of total power in 2019, according to Tencent News. By 2025, their combined share will be between 25 and 30 percent as the country endeavors to reduce its coal consumption.

The bearing on global energy storage is significant, as demonstrated in Wood Mackenzie's forecast for 2021. "Global energy storage deployments will nearly triple year-on-year, reaching 12GW/28GWh this year and close to the 1TWh mark by 2030. While global lithium-ion battery manufacturing capacity will double in the next two years," writes Le Xu in an article posted in October 2021 on the research and consultancy group's website.

LiFePO₄ batteries, in particular, are going to benefit from this energy storage market and the increasing sales of electric vehicles. Globally, this category, including portable and stationary types, reached $5.6 billion in 2020 and will rise to $9.9 billion by 2030 at 5.9 percent CAGR from 2021 to 2030, according to Allied Research.

Compared to other Li-ion batteries, lithium iron phosphate units have advantages of improved discharge and charge efficiency, long life span and high safety in terms of thermal and chemical stability. They remain cool in high-temperature environments and are nonflammable, in addition to being nontoxic. For these features and low cost, they are regarded as the preferable option for renewable energy applications.

On account of this industry outlook, LFP battery suppliers in China are expanding their productionfurther. Mica Power Co. Ltd, which invested in new automatic production and test equipment, boosted its output by 25 percent in 2021 and is planning to raise it anew by 10 to 15 percent in the months ahead.

There are hundreds of Li-ion battery manufacturers in China. Most can offer products for the renewable energy market and for these companies, the application accounts for 10 to 40 percent of shipments. Some also offer Li-polymer, lead-acid and NiMH types.

The majority of these suppliers are exporters, allocating 20 percent to as much as 80 percent of their output for overseas. Germany, the UK, Italy, France and the US are some of these key destinations.

Li-ion battery factories in China are found mainly in Shenzhen, Dongguan, Zhongshan and Xiamen, while there are also companies in Suzhou, Changzhou and Ningbo.

Competition is intense in this product category, complicated further by the presence of a number of foreign-invested companies operating on a bigger scale than the majority of domestic enterprises.

LFP batteries dominate

For the renewable energy market, the mainstream selections of Li-ion batteries in China are mostly based on the lithium iron phosphate chemistry. Typical LiFePO₄ cells offered have a rated voltage of 3.2V, energy density of up to 180Wh/kg and a life span of about 3,000 cycles.

For a broader market reach, customization of cells and battery packs according to intended application is widely accommodated.

Many Chinese suppliers follow international quality standards such as CE, IEC and UL, and RoHS environmental regulations.

Key inputs used in the production of Li-ion batteries include cathode and anode materials, electrolyte, separators and cases. These are sourced domestically or from overseas when required.

Material and component costs rose slightly in 2021, leading to higher battery prices. Most manufacturers raised their quotes by 5 to 10 percent.

Companies interviewed by Global Sources Electronic Components are predicting that cost and price stability may just be possible in the coming months.

150Ah LiFePO₄ battery

A 25.6V, 150Ah LiFePO₄ battery, the LFP25150 from Mica Power Co. Ltd has 3.84kWh energy capacity, 30mA maximum charge and discharge current, and 0 to 60 C charge and -20 to 60 C discharge operating temperatures.

The supplier requires a minimum order of 10 units. Delivery is within 20 days.

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200Ah LiFePO₄ battery

Shenzhen FBTech Co. Ltd's 12.8V, 200Ah LiFePO₄ battery has a life span exceeding 2,000 cycles. It meets UL and CE standards.

An order of at least one unit is required. Delivery is within 20 days.

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50Ah LiFePO₄ battery

The VP-LF12-50-8686 from Shenzhen Vcell Power Technology Co. Ltd is a 50Ah LiFePO₄ battery with 12V nominal and 10V discharge cut-off voltages, and 0.5C maximum charge and 1C maximum continuous discharge current. This CE-approved unit, weighing 6.5g, has 5 to 45 C charge and -20 to 60 C discharge operating temperatures.

The minimum order of 10 units is delivered within seven days.

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12,500mAh-rated LiFePO₄ battery

TOPA Technology Ltd markets the IFR42120 3.2V 12.5Ah LiFePO₄ battery, which has 3.2V rated voltage and 12,500mAh rated capacity.

The 50-unit minimum order has a seven-day lead time.

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