Recently, two notable developments have emerged in the battery sector. First, the China Automotive Power Battery Industry Innovation Alliance released data showing that in 2025, the cumulative installed volume of domestic ternary lithium batteries reached 144.1 GWh, accounting for 18.7% of the total installed volume, representing a year-on-year increase of 3.7%. Meanwhile, the cumulative installed volume of lithium iron phosphate (LFP) batteries hit 625.3 GWh, making up 81.2% of the total, with a year-on-year growth of 52.9%. Since 2021, LFP batteries have surpassed ternary lithium batteries in production, sales and installed volume, and the gap has been widening continuously.

Second, the Energy Bureau of Inner Mongolia Autonomous Region issued the *List of the First Batch of Independent New Energy Storage Construction Projects in 2026*, approving 31 independent energy storage projects to be included in the plan. In terms of technical route, all projects adopt lithium iron phosphate battery energy storage technology.

Lithium iron phosphate batteries used to be perceived as not high-end, even "low-end" and "poor in low-temperature resistance". However, with continuous technological advances, such perceptions have gradually changed. In recent years, LFP batteries have secured an increasingly firm dominant position in the market and achieved a remarkable "comeback" through continuous self-upgrading.

First, the technology of LFP batteries has continuously matured, with breakthroughs especially in energy density, high-temperature resistance and safety, freeing them from being confined to the "low-end" market. Compared with ternary lithium batteries, LFP batteries feature lower costs and longer service life, granting them greater economic advantages. Particularly in the new energy vehicle sector, more and more automakers have begun equipping their mid-to-high-end models with LFP batteries. Brands such as Tesla, Li Auto and Xiaomi have all adopted LFP batteries, proving that the technology not only meets the needs of ordinary consumers but also gains recognition from the high-end market.

In the energy storage sector, the advantages of LFP batteries have become even more pronounced. Energy storage technologies play a critical role in promoting the application of renewable energies such as wind and solar power. Thanks to their inherent strengths in stability, safety and environmental friendliness, LFP batteries have become the top choice for such projects. For instance, the 31 upcoming energy storage projects in Inner Mongolia all adopt LFP battery technology, demonstrating the strong vitality of this technology in large-scale energy storage initiatives.

Beyond technological progress, policy support for environmental protection and sustainable development is another key driver behind the rapid rise of LFP batteries. As the world attaches greater importance to carbon emission reduction targets, countries have rolled out policies to encourage the application of new and clean energy. Featuring lower environmental pollution and higher recyclability, LFP batteries have become an important technical option aligned with sustainable development requirements.

Evidently, a product category once labeled "low-end and flawed" can reshape industry perceptions and market dynamics by continuously addressing weaknesses and amplifying strengths. The "comeback" of lithium iron phosphate batteries epitomizes the rapid development of China's new energy industry and is an inevitable outcome of the interaction between technological innovation and market demand.

Going forward, LFP batteries are likely to gain further global traction and evolve into a more environmentally friendly, safe and economical energy storage solution. All this also reflects China's growing competitiveness in the global new energy sector.

Source: Consumer Daily Network