The Rise of Lithium Iron Phosphate (LFP): Cost Advantages
The Rise of LFP for Stationary Battery Storage Applications
In another clip from Solar Power International (SPI) 2020 presentations, Clean Energy Associates' Chris Wright compares the different manufacturing costs of LFP and Lithium-ion based storage.
Video Transcript:
As you can see by the graph, LFP cost structure can also better take advantage of economies of scale.
The main cost contributors to a lithium ion battery cell are the cathode, the anode, the separator, and the electrolyte.
For LFP, these four main contributors mainly make up about 50% of the total cost.
For NCM (Nickel Manganese Cobalt), they can make up close to 60% of the cost.
The cathode, of course, is the single most important and expensive component. But for LFP the cathode can be up to 25% of the total costs.
But for NCM, cathodes can be up to 40% of the total cost.