Not only did the loading of lithium iron phosphate (LFP) cathode materials among lithium-ion battery cathodes installed in electric vehicles worldwide surpass the loading of ternary materials such as nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA), but its growth rate also proved superior. The shift appears to stem from automakers adopting LFP in line with the expansion of budget electric vehicles in China and a preference for lower-priced EVs with price competitiveness.
According to SNE Research on the 20th, the total amount of cathode materials installed in batteries for electric vehicles worldwide from January to November last year was 2,316,000 tons, up 36.7% from a year earlier. Excluding the Chinese market, cathode loading reached 799,000 tons, a gain of 29.3%.
By cathode type, growth rates differ. From January to November last year, the total loading of ternary cathodes was 903,000 tons, up 12.5% from the same period a year earlier. During the same period, LFP loading surged to 1,413,000 tons, a jump of 58.4% year over year.
In addition, LFP loading is 510,000 tons more than ternary. EVs equipped with LFP batteries outnumber EVs equipped with ternary batteries, and the pace of increase has also surpassed ternary.
LFP's share of total cathode loading also grew. From January to November last year, LFP cathodes accounted for about 60% by weight. Compared with a year earlier, when LFP was 892,000 tons out of a total 1,695,000 tons from January to November 2024—about 53% of the total—the market share rose by 6 percentage points (P).
The biggest driver of LFP's expansion appears to be rising sales of LFP EVs in China. By cathode supplier, China's Hunan Yuneng (32,1000 tons) and Wanrun (22,1000 tons) ranked first and second, respectively. Third and fourth were also Chinese—Dynanonic (18,3000 tons) and Lopal (16,3000 tons).
SNE Research said, "The fact that the top tier of LFP suppliers are all Chinese companies shows that an effectively China-centric supply chain has formed in the LFP cathode market," adding, "LFP growth is leading to stronger global dominance by Chinese corporations. China's influence in the global battery materials supply chain is growing."
That said, Korean materials companies are holding their ground in the ternary cathode market. While China's Ronbay ranks first, L&F (79,000 tons), EcoPro (56,000 tons), and POSCO FUTURE M (43,000 tons) occupy second through fourth.
Keeping pace with market shifts, Korean cathode materials companies are preparing to enter the LFP market as well as strengthen ternary. EcoPro has built a pre-mass-production line for LFP cathodes with an annual capacity of 4,000 tons in Ochang. An EcoPro official said, "If a client requests LFP cathodes, we can immediately mass-produce the initial volume."
L&F also plans to complete an LFP plant in Daegu in the first half of this year and aims to begin mass production in the second half of next year. An L&F official said, "By next year, we plan to secure LFP cathode capacity of up to 60,000 tons per year."
POSCO FUTURE M will break ground this year on an LFP plant for energy storage systems (ESS) in Pohang in partnership with China-based CNGR and Fino, CNGR's Korean subsidiary, and plans to begin mass production in the second half of next year. A POSCO FUTURE M official said, "We may further expand investment in EV-use LFP in the future."
An industry official said, "We are responding in step with the expansion of the LFP market, but it's also important to remember that selling higher value-added ternary cathodes leaves more revenue than LFP."