Global LFP Battery Market to Reach 18010 Million USD by 2031 at 9.9% CAGR Driven by CATL and BYD

The lithium iron phosphate (LFP) battery market entered 2025 with strong momentum driven by record cost reductions in 2024, rapid product innovation, and significant supply chain localization. QYResearch reported that average lithium-ion battery pack prices fell 20% in 2024 to 115 USD/kWh, largely due to the increased adoption of LFP chemistries. Meanwhile, leading manufacturers announced breakthroughs in fast-charging capabilities and higher-energy-density products. These developments are reshaping the competitiveness of LFP batteries across electric vehicle and stationary energy storage markets worldwide.

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Latest Market Data
• Global market size: 9,386 million USD in 2024
• Forecast market size: 18,010 million USD by 2031
• CAGR (2025-2031): 9.9%
• Market concentration: Top three players hold approximately 88% market share
• Regional distribution: Asia accounts for 76% of demand
• Product segmentation: Prismatic batteries represent 73% of the market
• Application segmentation: Electric vehicles represent 83% of demand

Leading Companies
CATL
BYD
Gotion High-tech
EVE
REPT
CALB
Great Power
Lishen Battery
Wanxiang A123
ANC
Hithium
Lithion

Classification by Type
Prismatic LFP Battery
Soft Pack LFP Battery
Cylindrical LFP Battery

Applications
Electric Vehicle
Energy Storage
Others

Company Highlights 2024-2025
CATL introduced its second-generation Shenxing super-fast-charging LFP platform in 2024. It allows 520 km of driving range to be added within five minutes of charging and achieves 80% state of charge in around 15 minutes even at subzero temperatures. More than 60 vehicle models are scheduled to adopt Shenxing in 2025.

BYD expanded its Blade Battery platform in 2024 and is preparing Blade 2.0, targeting higher energy density levels around 190-210 Wh/kg while maintaining leading safety standards. The Blade remains central to BYD's passenger vehicle and bus production.

Gotion High-tech achieved mass production of its LMFP "Astroinno L600" batteries in 2024, adding manganese to LFP to improve energy density while retaining safety and cost advantages.

EVE Energy continued to grow shipments of high-capacity prismatic cells such as the LF280K and MB31 series, widely deployed in large-scale energy storage and commercial mobility solutions.

Hithium strengthened its position in stationary storage, opening a U.S. headquarters in Houston in 2024 and expanding its shipments of ultra-large LFP cells like the 1175 Ah Infinity Cell, designed for containerized storage applications.

Flagship LFP Products
CATL - Shenxing (2025)
• Chemistry: LFP
• Key metrics: 520 km range added in 5 minutes, peak charging power ~1.3 MW
• Temperature resilience: 0-80% charging in ~15 minutes at -10 °C
BYD - Blade Battery
• Form: Long, thin prismatic cells integrated cell-to-pack
• Safety: Nail penetration test with no fire or smoke, surface temperatures around 30-60 °C
• Energy density: Current ~150 Wh/kg; Blade 2.0 targets up to 190-210 Wh/kg
EVE Energy - LF280K Prismatic Cell
• Nominal: 3.2 V, 280 Ah
• Dimensions: ~207 × 174 × 72 mm
• Weight: ~5.4 kg
• Cycle life: ~6,000 cycles
CALB - L173F314 Prismatic Cell
• Nominal: 3.2 V, 314 Ah
• Dimensions: ~173 × 72 × 207 mm
• Cycle life: Several thousand cycles, optimized for storage and heavy-duty EVs
Hithium - Infinity Cell 1175 Ah
• Nominal capacity: 1175 Ah
• Integrated container: ~320 kWh per unit
• Focus: Utility-scale stationary energy storage

Verified Downstream Customers
Tesla
Ford
Volkswagen
Citroën
Rivian
NIO
BYD Auto
XPeng
MG Motor
Toyota
Fluence
Wärtsilä
Sungrow
Powin
Enphase Energy

Market Trend 2024-2025
Fast-Charging LFP Becomes Commercially Viable
The launch of CATL's Shenxing platform marked the first commercial-grade fast-charging LFP solution. Adding more than 500 km of range in five minutes and enabling 12C charge rates, it reduces charging time gaps compared to gasoline refueling. This development makes LFP a competitive choice not only for affordability but also for charging convenience.

LMFP Gains Momentum
Manganese-doped LFP (LMFP) entered mass production in 2024. Gotion's Astroinno L600 series offers higher energy density while retaining safety and cost efficiency. LMFP is expected to expand adoption in compact EVs and premium residential storage systems by 2026.

Supply Chain Localization Under Tariff Pressure
New U.S. tariff measures in 2024 increased duties on EVs and battery imports. This triggered large-scale localization strategies in 2025. Tesla signed a 4.3 billion USD LFP supply deal with LG Energy Solution, linked to U.S. production starting in 2027. Several other OEMs are exploring domestic production in Europe and North America to mitigate tariff risks.

Energy Storage Emerges as the Anchor Market
Energy storage continues to dominate LFP deployment. Integrators such as Fluence, Wärtsilä, Sungrow, and Powin are standardizing on LFP for large-scale projects. LFP is now considered the default chemistry for grid-scale systems due to its cycle life and cost profile, surpassing NMC in new utility-scale deployments.

Prismatic Cells Consolidate Market Leadership
Prismatic batteries, accounting for 73% of the market, remain the dominant form factor. Their packing efficiency and compatibility with cell-to-pack design ensure continued preference in both EV and storage markets, with BYD and CATL leading global deployments.

Cost Competitiveness Strengthens
Battery pack prices dropped to 115 USD/kWh in 2024, with some EV models achieving under 100 USD/kWh at the pack level. LFP was the primary driver of this cost decline. This enhances affordability for mass-market EVs and improves financial returns for four- to eight-hour grid storage.

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Broader Automaker Adoption
Automakers outside China are adopting LFP aggressively. Ford introduced LFP in Mustang Mach-E models, Volkswagen confirmed its use in entry-level EVs from 2026, Rivian rolled out LFP standard packs in 2025, and Citroën launched the ë-C3 with LFP as standard. NIO switched its 75 kWh standard pack entirely to LFP, and Toyota deployed BYD's Blade in the bZ3.

Safety and Recycling Discussions Advance
The safety benefits of LFP, highlighted by the Blade's nail penetration resistance, continue to support its deployment in public fleets and residential storage. However, recyclability challenges remain, as lithium recovery economics are weaker compared to nickel-based chemistries. Industry stakeholders are pushing for design-for-recycling measures to address this future issue.

Chapter Outline:

Chapter 1: Introduces the report scope of the report, executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the market and its likely evolution in the short to mid-term, and long term.
Chapter 2: key insights, key emerging trends, etc.
Chapter 3: Manufacturers competitive analysis, detailed analysis of the product manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc.
Chapter 4: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc.
Chapter 5 & 6: Sales, revenue of the product in regional level and country level. It provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and market size of each country in the world.
Chapter 7: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 8: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 9: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 10: The main points and conclusions of the report.

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