Automotive original equipment manufacturers (OEMs) are accelerating the adoption of lithium iron phosphate (LFP) and sodium-ion chemistries. The shift reflects ongoing price volatility in battery-grade nickel and cobalt, alongside persistent supply chain bottlenecks.
Margin Preservation
By adopting alternative chemistries in entry-level model lines, manufacturers aim to stabilize vehicle production margins. Industry data indicates LFP will account for over 45% of total passenger EV production by late 2025.