new LFP batteries bring prices down, but sow doubt

Chinese, American or European, builders are crying out for them. Lithium-iron-phosphate (LFP) batteries have become in record time the miracle solution capable of circumventing the cost inflation imposed by the shortage of rare metals and, therefore, to bring down the price of electric cars for good. Tesla already uses it for its entry-level models made in Asia and certain other products in Europe, as do MG or BYD, but also Ford. Volkswagen has made known its intention to make extensive use of it in the future.

Read also: Article reserved for our subscribers Batteries are entering their golden age, driven by the advent of “all-electric”

Stellantis, which judges, through the voice of its general manager, Carlos Tavares, this technology essential for “produce competitive models”, also decided to invest in lithium-sulfur technology, and announced an investment in the American start-up Lyten. Production is not expected before the end of the decade.

While the fall in the price of batteries seemed certain, the process was interrupted, and the continuum that was supposed to rapidly converge the price of electric and thermal vehicles was broken. The rush on the raw materials used for lithium-ion batteries has caused the costs of the chemistry known as NMC (nickel-manganese-cobalt), mainly used on board “wattures”, to explode.

Not the panacea

Faced with this spiral, LFP batteries, still almost unknown in Europe, but which have made a spectacular breakthrough in China and now represent around a third of the world market, appear to be a welcome alternative. Their cathodes contain few “critical metals”, which reduces supply risks and could limit production costs by some 27%, according to BloombergNEF.

These advantages make LFP technology an effective lever for lowering the entry ticket for electric models, whose battery represents between 30% and 40% of the value. Tesla already equips its entry-level Model 3 and Model Y (Propulsion) with it.

Compared to their NMC counterparts, LFP batteries have other arguments. Their lifespan is longer, they can be systematically recharged to 100% without prejudice and are less prone to overheating. The panacea? Not quite. The LFP chemistry offers a lower energy density, which does not allow it, in particular in cold weather, to display autonomy as high as in NMC, and makes it commercially unsuitable for the top of the range. In addition, the recharge time is tendentially longer.

You have 49.54% of this article left to read. The following is for subscribers only.

source site-30