Li-ion Battery

In a conventional Li-ion battery, the anode is typically made of graphite, and the cathode is Lithium oxide.  The key to high capacity & superior power delivery lies primarily in the cathode, which has characterized the Li-ion batteries.

  

LFP & Ternary batteries

  

High commodity costs are spurring automakers to adjust their battery strategies and switch to cheaper battery compositions. One such avenue is to substitute cobalt w/ nickel, as shown in Figure 1.  In 2025 in China, lithium iron phosphate (LFP) batteries accounted for about 625.3 GWh (≈ 81.2%) of total power battery installations, compared with 144.1 GWh (~18.7%) for ternary batteries, with LFP volumes up ~52.9% YoY and ternary up ~3.7% YoY, underscoring LFP’s dominant role in balancing cost & performance amid shifting supply dynamics [CNEV, 2025].

  

Both LiFePO₄ (LFP) and ternary lithium batteries have their advantages: LFP is the best choice for high safety, while ternary lithium batteries offer higher energy density & performance at lower temperatures (down to -30 ℃) [PL, 2023].

​

Li2CO3 & LiOH

  

Lithium, specifically in Lithium carbonate (Li2CO3) & Lithium hydroxide (LiOH) compounds, is a crucial ingredient in EV batts and BESS.  Figure 2 shows the Lithium sources, compounds, and primary applications (battery use is highlighted).  The U.S. and European efforts to build domestic supply chains won’t eliminate dependence on China, at least in the short- & medium-term.  Figure 3 shows China battery manufacturing capacity.  Figure 4 shows that the "battery factor", i.e., higher battery costs, could delay the tipping point for EVs.