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In 2025, lithium iron phosphate (LFP) batteries surpassed nickel-based chemistries in electric vehicle (EV) deployments for the first time, driven by lower costs and reduced reliance on controversial materials. According to RhoMotion, LFP batteries accounted for over half of global EV battery deployments last year.

The transition towards LFP is primarily led by Chinese manufacturers, with over 80% of EVs sold in China equipped with LFP batteries. European and Asian markets (excluding China) accounted for 75% of global LFP growth, aided by the influx of Chinese EVs.

Meanwhile, North America saw a decline in LFP deployments due to tariffs on Chinese batteries. The LFP market in the U.S. is expected to grow with the introduction of more affordable EV models. Concurrently, the Chinese company Jinhong Gas has initiated operations in Mérida, Spain, to produce industrial gases, supporting the emerging battery materials industry in Europe, with a projected investment of 116 million euros and the creation of 160 jobs.