China’s lithium iron phosphate (Lifepo4) industry is accelerating its “going overseas”.
Including lithium iron phosphate batteries and materials, the global layout of lithium iron phosphate materials has been gradually expanded through exports, cooperation with overseas companies, and the establishment of local factories.
On the one hand, Chinese lithium battery companies export LFP batteries through Chinese battery production bases, and on the other hand, they build factories overseas to produce the required lithium iron phosphate batteries.
CATL & Ford
For example, recently, CATL signed a cooperation agreement with Ford Motor Company. From 2023, it will supply lithium iron phosphate battery packs for the Ford Mustang Mach-E model in the North American market, and from the beginning of 2024, it will supply lithium iron phosphate battery pack to Ford pure electric Pickup F-150 Lightning in the North American market.
In addition to obtaining lithium iron phosphate orders from overseas car companies, the current lithium battery products produced by Chinese battery companies overseas are also mainly lithium iron phosphate batteries.
Meanwhile, Chinese battery companies have also set up European battery production bases at the Göttingen plant in Germany, mainly producing lithium iron phosphate batteries.
Mexico, Argentina & Vietnam
In the future, these companies may also build large battery bases in Mexico, Argentina, Vietnam and other places, mainly producing lithium iron phosphate batteries.
The factory built by CATL in North America invested 5 billion US dollars and will produce ternary batteries and lithium iron phosphate batteries, mainly for Tesla and Ford.
Based on the needs of overseas energy storage customers and car companies, overseas power battery bases will definitely consider the deployment of lithium iron phosphate batteries.
Chinese battery companies have accelerated the development of lithium iron phosphate batteries to support international car companies this year. On the one hand, due to the accelerated electrification of automobiles in Europe and the United States, the demand for production capacity has further increased, and the cost advantage of lithium iron phosphate has become more prominent.
On the other hand, Chinese battery companies are at the forefront of technological innovation in lithium iron phosphate materials, batteries, systems, etc., which can meet the needs of international car companies.
For example, CATL said that thanks to the excellent characteristics of the lithium iron phosphate battery system in terms of battery life and thermal stability, models equipped with Ford will have excellent performance in environmental adaptability.