Lithium iron phosphate batteries (LiFePO4 or LFP), which can be up to 30% cheaper to make than conventional lithium-ion (Li-Ion) batteries containing nickel, cobalt and manganese (NCM) will be produced by Nissan Motor.
In a Jan. 30 Nikkei Asia report, Nissan Motor will manufacture LFP batteries using lower-cost materials, with plans to install them in EVs in emerging markets as soon as 2026.
The tradeoff is that LFP batteries have less energy density than NCM batteries, shrinking driving distance per charge by up to 30%.
Nissan is currently developing LFP batteries at its research and development facility in Atsugi, Kanagawa Prefecture in Japan, according to Shanghai Metals Market.
In China, the prevailing battery use is LFP. Apart from being cheaper, it uses fewer hard-to-source minerals, and is often safer under extreme conditions. But it holds less energy in a given volume, as illustrated in Car and Driver’s Jan. 28, 2023 story “Building Better Batteries for Electric Vehicles.”
But the reduced range doesn’t seem to be a deal-breaker, for as long as the price remains nearly a third lower than its Li-ion counterpart. In fact, even Tesla has begun using LFP for some US models, and Ford announced it will build an LFP cell plant for its EVs, according to Car and Driver.