In the first half of 2025, lithium iron phosphate power batteries will account for 55.1% of the global installed market, and their mainstream position in the global new energy industry has been fully established.

According to data from GGII, global sales of new energy vehicles reached 1.801 million units in June 2025, a year-on-year increase of 31%; The installed capacity of power batteries is about 96.1GWh, a year-on-year increase of 34%.

From January to June 2025, the cumulative sales of new energy vehicles worldwide reached 8.776 million units, a year-on-year increase of 29%, driving the global installed capacity of power batteries to approximately 465.9 GWh, a year-on-year increase of 35%.

Among them, the installed capacity of lithium iron phosphate batteries is 256.6 GWh, with a year-on-year increase of 64% and a market share of 55.1%. Compared to 2024, the share of lithium iron phosphate batteries in the global installed power capacity is 50.3%, an increase of 5 percentage points.

At the same time, the installed capacity of 2025H1 lithium iron phosphate batteries in China was 223.1 GWh, a year-on-year increase of 71%, accounting for 77.4% of the market share.

Lithium iron phosphate batteries are evolving from a "Chinese advantage" to a "global consensus".

The high growth rate of battery exports shows strong potential. According to export data, from January to June, China's cumulative exports of power and other batteries reached 127.3GWh, a year-on-year increase of 56.8%, accounting for 20% of the total H1 battery sales. The main export of batteries is power, accounting for 64.1% of the total.

On the basis of the continuous increase in the export volume of power batteries, the influence of lithium iron phosphate in the power battery export sector continues to expand.

According to data, from January to June 2025, the cumulative export volume of lithium iron phosphate batteries reached 33.1 GWh, with a year-on-year growth rate of up to 37.0%, the most impressive year-on-year growth rate, significantly higher than the 20.6% growth rate of ternary material batteries and far higher than the overall export growth level of 26.5%, becoming the core driving force for export growth.

The monthly export volume of lithium iron phosphate batteries in June accounted for 42.7% of the total exports, and the proportion continued to rise, approaching that of ternary materials (56.8%). In the cumulative exports from January to June, lithium iron phosphate batteries accounted for 40.6% and ternary batteries accounted for 58.8%. The monthly data in June has further narrowed the gap between ternary lithium iron batteries.

The changes in export structure and the high growth rate of lithium iron phosphate directly correspond to the technological route switching of global car companies. Since 2024, Stellantis、 International mainstream car companies such as Ford, Renault, Volkswagen, Mercedes Benz, General Motors, Hyundai, and Kia have successively announced an increase in the proportion of LFP battery installation, and have cooperated with CATL, Guoxuan High Tech, Yuanjing Power, and LG New Energy.

At the same time, domestic enterprises continuously enhance their LFP competitiveness through technological iteration. In 2025, BYD and CATL will successively release second-generation blade batteries and second-generation Shenxing supercharging batteries, pushing the peak charging rate of lithium iron phosphate fast charging to 10C. Combined with megawatt level supercharging piles, they will achieve a "oil electricity same speed" energy replenishment experience, eliminate the shortcomings of LFP in the energy replenishment process, and drive domestic and foreign market demand to a higher level.

It is worth noting that after the release of the "Big and Beautiful" bill in the United States, China's lithium batteries need to pay attention to growth opportunities in markets such as Europe and Asia due to policy uncertainty.

From a national perspective, Germany has replaced the United States as China's largest export market for lithium batteries since May. According to data from the General Administration of Customs, the export value to Germany in 2025H1 reached 6.515 billion US dollars, accounting for 19.1% of the total export value and a year-on-year increase of 11.5%. The rapid increase in LFP models in the German and European markets has become a key driving force for the sustained expansion of lithium iron phosphate battery exports.

However, the current domestic production capacity of lithium iron phosphate batteries in the United States cannot meet the demand, and Chinese lithium iron phosphate products are still needed to fill the gap.

According to foreign media reports, before the mass production of low-cost batteries in the United States through General Motors' cooperation with LG New Energy, General Motors will purchase batteries from CATL for the production of its second-generation Chevrolet Bolt electric vehicle, with a transition period of about two years. The new generation Chevrolet Bolt is scheduled to be put into production at the Fairfax assembly plant in Kansas by the end of this year and officially enter the market in 2026.

The leading advantage of LFP technology has also prompted the global industrial chain to accelerate its follow-up. LG New Energy, which is at the forefront, caught up with the window period dividend after the "Big and Beautiful" bill was announced in the United States, winning Tesla's $4.3 billion LFP battery energy storage order, which is its largest single contract in history. The supply cycle will start as early as 2027, and the products will be produced by its factory in Michigan, USA. In addition, LG will also transform some production lines of its Ultium Cells Tennessee factory, which is a joint venture with General Motors, from NCM to LFP, and is expected to start production by the end of 2027.

Previously, LG New Energy planned to supply Renault with lithium iron phosphate batteries; Samsung SDI and SK On are also intensifying their LFP battery production capacity layout. SK On plans to build a 50GWh factory in Europe or China, while Nissan announced the construction of an LFP battery factory in Japan, expected to start production in 2028.  

The industry previously estimated that by 2028, LFP's market share in the overseas power battery market would reach 60%.