Expiring Patements Pave Way for Cheaper LFP Batteries in US Electric Vehicles
Expiring patents for lithium-iron-phosphate batteries allow Western automakers to adopt the cheaper, safer technology that already dominates China. This shift promises to lower entry-level EV prices despite looming global lithium shortages.
A wave of expiring patents for lithium-iron-phosphate (LFP) battery technology allows US and European automakers to finally adopt the cheaper chemistry that already dominates the Chinese electric vehicle market. Previously, a consortium of North American universities restricts these patents to Chinese manufacturers, forcing Western companies to rely on alternative lithium-ion batteries that offer longer ranges but come with higher costs.
LFP batteries now account for 17% of the global EV market and attract significant interest due to their lower production costs, improved fire resistance, and elimination of scarce raw materials like cobalt and nickel. Industry analysts project that this iron-based technology powers cheaper, entry-level passenger vehicles and light commercial delivery trucks, while more expensive nickel-based cells remain reserved for high-end performance cars.
Although experts warn that a global lithium shortage reduces projected EV sales by 2030, LFP technology still maintains a distinct advantage because it faces fewer supply chain bottlenecks than nickel-manganese-cobalt alternatives. As a result, analysts expect a quarter of European EVs to utilize LFP chemistry soon, with the affordable batteries playing a major role in the 250 new battery-electric models arriving in the United States by the end of the decade.