Chinese battery maker Gotion High-tech [002074:CH] plans to increase the energy density of lithium iron phosphate (LFP) batteries to 300 Wh/kg by 2030, as reported by Nikkei Asia on July 11. The company is working to improve the performance of both the positive and negative electrodes of its batteries by boosting LFP energy density, which in turn can greatly expand electric vehicles’ driving range. Gotion High-tech has been able to mass-produce LFP batteries with an energy density of 210Wh/kg in December 2021. Its LFP battery installed capacity was 8.02 gigawatt-hours (GWh) in 2021, presenting a growth rate of more than 140% YoY.

Since 2021, LFP batteries have been widely recognized for their low cost and safety. According to Goldman Sachs, LFP batteries will account for 38% of the electric vehicle (EV) battery market in 2030, up 16% from 2020. In China, ternary batteries accounted for 49% of the market in 2021, while LFP accounted for 51%, owing to the growing energy density of LFP batteries due to material and technology advancements. To further capture opportunities in the global EV boom, Gotion High-tech is committed to increasing its investment in R&D and talent in the lithium iron industry. From 2015 to 2020, Gotion High-tech’s R&D expenditure rose from RMB140m (USD20.81m) to RMB696m (USD103.47m), and the proportion of R&D expenditure to operational revenue climbed from 4.9% to 10.4%.

Sources:

https://asia.nikkei.com/Business/Automobiles/Chinese-battery-maker-powers-SAIC-s-economy-EV

https://libattery.ofweek.com/2022-02/ART-36001-8420-30549510.html

https://www.gg-lb.com/art-44490.html