- LFP was the fastest-growing battery chemistry in 2025, with demand increasing by 48%, according to research firm RhoMotion.
- It has overtaken nickel-based packs to become the world’s dominant battery chemistry.
- China led this growth, followed by Europe and some Asian countries.
The rollout of low-cost lithium iron phosphate (LFP) batteries will surpass the deployment of traditional nickel-based chemicals in electric vehicles in 2025 for the first time. EV Magazine Citing data from research company RhoMotion. This represents a major shift in the global battery industry, and another sign of China’s continued dominance here.
For many years, automakers have relied heavily on nickel-manganese-cobalt (NMC) batteries, largely because they benefited from a mature supply chain and higher energy density that provided the driving range desirable in electric vehicles. (Most electric vehicles in the US market use NMC batteries.)
But these advantages came at a cost. Heavy-duty nickel-cobalt batteries are expensive, have a high environmental impact and remain tied to controversial supply chains involving Labor and human rights violationsEspecially in the Democratic Republic of the Congo.
As a result, battery makers have accelerated their shift toward nickel-free chemicals such as LFP.
Chinese automakers and battery companies have been leading the shift, thanks to lower LFP costs, reduced reliance on disordered materials and a narrowing of the energy density gap with NMC batteries.
By last year, LFP batteries accounted for more than half of EV battery deployments globally, RhoMotion said. NMC batteries still retain an energy density advantage, but automakers have found ways to compensate for this disadvantage. Cell to package and From cell to structure The designs allow more cells to be compressed into similar spaces. Improved anode and cathode materials help close the performance gap further.
And China is absolutely crushing it when it comes to LFP adoption. Between January and November last year, more than 80% of electric vehicles sold in the country were equipped with LFP batteries. This dominance also extends abroad.
Photography: Kevin Williams/InsideEVs
Europe and Asia (excluding China) accounted for nearly 75% of global LFP growth last year, largely driven by a rise in the number of Chinese electric vehicles entering overseas markets. In Europe, Chinese automakers accounted for a record 12.8% of the electric vehicle market in November, more than double their share compared to the previous year. Bloomberg reported citing figures from Dataforce. BYD, Jump drive and Cherry All achieved strong growth across the region in 2025. And in China Cattle It is by far the leader in the LFP market, and last year, about a third of all electric vehicles sold had CATL battery cells. You do the math.
Chinese battery giants are pushing hard for local LFP production in Europe, both to reduce their exposure to tariffs and also to stay close to automakers. Both BYD and CATL are building battery factories in Hungary. CATL already operates a factory in Germany and has another planned in Spain in partnership with Stellantis.
North America was the only region to see a decline in LFP deployments in 2025. The US has effectively blocked batteries made in China from entering the country through tariffs and strict supply rules under the Biden-era inflation control law, leaving only a few LFP-equipped EVs in the US market.
Photography: Patrick George
Tesla Briefly displayed LFP batteries on the base Model 3 In the United States, but it stopped this reduction in 2024 due to tariffs. Rivian and Ford still use LFP packages on base versions of the R1S, R1T, and Mustang Mach-E. However, LFP is expected to see somewhat of a rebound in the US thanks to affordable electric vehicles like the new Chevrolet Bolt And the next Ford A $30,000 electric truck.
LFP is still poised for growth in the US, but the path will look different from what is happening in Europe and China. Much of this momentum is expected to come from domestic production of battery energy storage systems (BESS), rather than from electric passenger cars alone.
After the $7,500 federal tax credit expired, several U.S. battery makers, including LG Energy Solution, Tesla and SK On, have adjusted their battery manufacturing capacity to fit the ESS market, which is growing much faster than electric vehicles.
Contact the author: suvrat.kothari@insideevs.com
