- The UK’s Advanced Propulsion Centre has released a new report called ‘L(M)FP batteries for EV adoption from a UK perspective’ – which outlines how utilising LFP (Lithium Iron Phosphate) batteries and localising supply chains could help the UK to meet its increasingly stringent ZEV targets.
- The report, which can be read in full here, highlights the comparatively rapid rise of EV sales in China compared to the UK and mainland Europe, with the report noting Chinese manufacturer’s heavier reliance on cheaper-to-produce LFP batteries, compared to typically more expensive Nickel Manganese Cobalt (NMC)-based batteries.
- According to the research, 68% of batteries manufactured in China are of the LFP variety – with that proportion rising to 99% when it comes to batteries destined for the heavy-duty vehicle segment.
Advanced Propulsion Centre report delves into LFP batteries
Crucially, the APC has called for ‘low-cost battery chemistries’ such as LFP to make EVs more affordable and drive electric vehicle adoption – not just in the UK and Europe, but globally. The report also pins lagging EV adoption directly on a lack of cost-effective EVs.
LFPs have numerous benefits over their NMC counterparts. The lack of need for critical materials such as nickel and cobalt helps drive the average price of LFP cells lower than NMC cells, while their higher thermal stability also means they can also be packaged into larger cells, driving down the cost of EV battery packs and the overall vehicle cost.
Alongside APC’s call to action, steps to boost LFP production within Europe has already been realised by some OEMs Stellantis, for instance, are primed to open an LFP battery plant in Spain by 2026, which it says will help it add more affordable EVs to its portfolio – which, in turn, should spearhead EV adoption.
Julian Hetherington, Automotive Transformation Director at the APC, commented:
“The slowdown in battery manufacturing investment for the automotive sector has been well-documented over recent months, and it remains a challenging environment with significant investment hesitancy in EV supply chains in evidence across the UK and Europe in response to subdued consumer uptake. The main barrier for consumers is cost. Current battery chemistries like nickel manganese cobalt (NMC), while proving successful from a performance perspective in EVs, remain challenging from a cost perspective vs petrol and diesel vehicles, keeping EV prices stubbornly high and out of reach for many at a time when the cost of living is making itself known.”
Dr Hadi Moztarzadeh, Head of Technology Trends at the APC, added:
“Key takeaways from the insight report are the changes and steps needed to build a resilient supply chain for low-cost battery manufacturing. The regional supply chain currently lacks the capability to deliver lithium and manganese – materials needed for the manufacture of LF(M)P. We also are at a disadvantage as far as labour and CapEx costs are concerned vs China as well as recycling, with APC research pointing to the fact that there is less profit to be made from LFP when compared to NMC with its valuable metals of nickel and cobalt.
Localising supply chain is a key step and will give us the opportunity to leverage the benefits of LFP batteries. We need to ensure the forthcoming EU-UK Rules of Origin (ROO) regulation is front of mind as they are due to come into force in 2027. Coupled with proposed LFP export controls from China, which would see the Chinese government needing to approve technology exports, it makes the case for ensuring the wheels are put in motion now to establish local supply chains.”
