There is no denying that EVs (electric vehicles) are the way forward for India, just like the rest of the world. In an ultra-competitive automotive industry, every edge gained via each element can mark the difference between profitability and the lack of it. Herein, battery technology is playing a defining role.
Although NMC (nickel manganese cobalt) batteries held the edge earlier, LFP (lithium ferro phosphate) batteries have stolen a march on the former – and with good reason. Previously, nickel-based lithium-ion NMC batteries were preferred due to their high energy density alongside the ability to provide power plus range. As the EV market matures, the conversation on battery cost is evolving as well.
The LFP Advantage Versus NMC
For a few years, it was debated whether NMC or LFP batteries were the better option. While NMC batteries were previously preferred, the pendulum has now swung towards LFP, due to cost, sustainability and other concerns.
According to a recently conducted study, it was found that LFP cells exhibited longer cycle life spans, delivering over 3,000 to 5,000 charge cycles, vis-à-vis NMC’s 1,000 to 2,300 cycles at optimal discharge rate and temperature. Additionally, the LFP battery’s degradation was approximately twice as slow under the same conditions. From a consumer point of view, this means an EV with an LFP battery can go for a long time, reduces range anxiety and with enhanced battery management, is a primary concern with new EV buyers.
Compared to an NMC battery, LFP batteries hold up to twice the charge-discharge cycles, leading to longer life and more long-lasting value. Precisely for such reasons, LFP batteries are particularly suitable for high-mileage duties sought in electric buses as well as in freight and shared mobility fleets.
Coming to higher energy density, though this leads to faster charging, the battery is exposed to additional stress. This means extra wear and tear, lower battery capacity and more heat generation. Combined, these elements negatively affect the battery’s life cycle. Therefore, a succession of rapid charges and discharges will reduce the NMC battery’s life cycle and even affect its maximum charge holding capacity.
This shift towards LFP has been noticeable in China, which was earlier heavily into NMC manufacturing. In China’s case, while the better energy density of NMC batteries drove the narrative, it was soon apparent that LFP offers 95% of the NMC performance at almost 30% less cost. In a hypercompetitive market, this robust margin is too difficult to ignore.
Unlike NMC, the LFP batteries’ stable phosphate structure makes them more tolerant to the stress linked with rapid charging. Depending on various elements like charging rate, performance, cooling systems used in the vehicle and the battery’s safety mechanism, typically, LFP batteries will offer about twice the charge cycles as that of NMC batteries.
Thus, whether it is mass-market EVs, 2-wheelers or energy storage systems, LFP is preferred due to the extra durability and affordability. This transition means NMC is increasingly limited to heavy-duty vehicles and premium cars.
Thermal Runaway Risks and Other Elements
However, battery safety and cost considerations have remained central to EV discussion from a consumer standpoint. Due to its thermal stability, LFP is more resistant to fire, overheating and thermal runaway. Some elaboration is required regarding thermal runaway. NMC batteries have cathodes containing metal oxides. While this material ensures high energy density, it is less stable thermally compared to LFP’s phosphate structure. In simple words, thermal runaway refers to a chain reaction that takes place inside a battery cell, causing a rapid temperature rise, in turn triggering a fire or explosion. Various causes could lead to this process, such as physical damage, overcharging, excessive internal or external heat and swift discharge. Thermal runaway is more important in urban zones with high population densities and warm climates.
Conversely, the LFP cathodes’ phosphate structure remains more stable, retaining its stability even while withstanding higher temperatures. Consequently, LFP is less prone to the thermal runaway risk. NMC and LFP batteries both have advanced thermal management systems installed to control this process, which makes them safe for daily usage. With control mechanisms and sensors, this system restricts the voltage, temperature, current and discharging rate. But the NMC system is usually more complex than the LFP.
India’s Late-mover Advantage
India has been a relatively late starter in this segment since domestic battery manufacturing began later. Nevertheless, this could prove to be the biggest blessing in disguise. When the world backed NMC heavily four years ago, India held back its investment in the space. In hindsight, the late entry is proving useful since it has helped the country invest funds in the winning segment, LFP.
Finally, the late-mover advantage is beneficial for electric 2-wheeler brands that are now targeting urban families with the increased safety features of LFP. Given the country’s hot climatic conditions and unique use models, LFP is gradually emerging as India’s EV DNA – thereby benefiting both buyers and brands.
Mr Ram Rajappa is Chief Operating Officer at Greaves Electric Mobility. Views expressed are the author's personal.