By 2028, lithium iron phosphate (LFP) will replace nickel manganese cobalt (NMC) and become the dominant force in the chemical battery field, and by 2030, the global market demand will exceed 3000GWh. That's according to Wood Mackenzie's latest analysis of the lithium-ion battery manufacturing industry.

The two manufacturers planning to add the most capacity this decade are China's CATL and South Korea's LG.CATL alone plans to bring 800GWh of annual production capacity online by 2030.

Like Wood Mackenzie, the Clean Energy Association (CEA) also pointed out that the competition between LFP batteries and NMC batteries is heating up. Both companies point out that electric vehicle makers are beginning to accept the trade-off of reduced energy density when adopting LFP batteries due to the advantages of safety, long life and low cost.

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