What are the key differences between LFP and NMC Cells?
LFP and NMC are both lithium-based battery cells with different cathode chemistries. LFP use iron-phosphate cathodes while NMC cathodes use expensive minerals like nickel, manganese and cobalt. Anand Kulkarni, Director, Crisil Ratings pointed out that LFP batteries offer advantages such as better thermal stability, and relatively more durability and safety and are cheaper compared to NMC cells. On the other hand, NMC batteries, have higher energy density (150-250 kWh/kg) compared with LFP versions (100-150 kWh/kg), which helps in smaller battery packs, he added.
Further, NMC batteries support faster charge-discharge cycles compared with LFP batteries, which makes them ideal for high-performance applications, Kulkarni added.
Are LFP Cells currently used in India?
LFP batteries are widely used domestically in electric vehicles—four- and two-wheelers, buses and battery energy storage systems (BESS). Some electric two-wheeler manufacturers have switched from NMC to LFP due to cost advantage, Kulkarni said.
Why are LFP cells cost-effective when compared to NMC cells? Will this reduce vehicle cost?
Battery accounts for 40-45 per cent of an electric vehicle’s cost. The cathode component accounts for 20-30 per cent of the cost of a battery pack. Given LFP cathodes are cheaper, LFP batteries have become the go-to choice for cost-effective electric vehicle batteries, Kulkarni added.
Additional advantages include longer battery life (more lifecycles), better stability and safety. Till now, energy density was a key concern around LFP batteries; but with advances in battery packing technologies and better battery management systems, the energy density of LFPs has increased over the past 2-3 years, making them viable for more applications. By using cheaper LFP cells, battery manufacturing costs are expected to reduce for Original Equipment Manufacturers (OEMs), he pointed out.