The global lithium iron phosphate (LFP) batteries market is projected to surge from $65.03 billion in 2025 to $160.30 billion by 2030, growing at a CAGR of 14.2%, according to a new MarketsandMarkets report.
Known for their high energy density, thermal stability and long cycle life, LFP batteries are increasingly used across EVs, renewable energy storage, and industrial applications.
Demand for battery-powered material-handling equipment and the shift to renewables are key growth drivers, although environmental concerns around battery disposal remain a challenge.
Among capacity segments, 50,001–100,000 mAh batteries are expected to grow fastest, serving high-power needs in EVs, HEVs, telecom, defense and solar storage. These batteries come in various formats including modular, prismatic and polymer designs.
High-voltage batteries (above 36V) will dominate the market, powering heavy-duty EVs, microgrids and marine systems. Their architecture often involves modules, racks and containers built from chemistries such as lithium manganese oxide and nickel manganese cobalt.
Asia Pacific leads the global LFP market, driven by robust automotive production, rising consumer demand, and established battery manufacturing hubs in China, Japan and South Korea. Major players like BYD, CATL, CALB and LG Chem are expanding production and innovating across energy storage and mobility sectors.
Key companies such as BYD and CATL are investing in R&D and global expansion, offering advanced battery modules and integrated BMS solutions for diverse applications – from portable electronics to grid-scale energy systems.
