The rise of cheaper lithium iron phosphate (LFP) batteries will continue this year, with the cell chemistry set to account for almost 50% of all market demand.
LFP cells are forecast to increase their market share to 48% in 2024, from 45% of demand in 2023, according to Benchmark’s Lithium Ion Battery Database. In contrast, the share of nickel cobalt manganese (NCM) cells on the market is set to decline to 42% from 43%.
This will have a particularly strong impact on the demand for cobalt. Nickel is expected to be in a surplus this year and lithium is set to see a balanced market in 2024.
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