LiFePO4 battery is pretty expensive upfront because the materials used in this battery technology are more expensive and of higher quality, making it the safest battery on earth.
To understand why this battery is so expensive, you have to look at its characteristics. Then it will become clear to you.
Otherwise, you will take this as only a disadvantage on LiFePO4 batteries over Li-ion batteries.
Safe & Stable Technology of LiFePO4
LiFePO4 battery has amazingly stable chemistry. Because the battery is made from phosphate, it offers unparalleled thermal performance. As a consequence, this battery does not ignite or catch fire.
Besides, the iron-based cathode makes it a safer option than lithium-ion batteries. As a result, even in extreme conditions, the LiFePO4 battery won’t explode or ignite.
Outstanding Battery Performance
In terms of performance, nothing is comparable to this battery. Slow self-release, long life, etc., are not just some terms. This battery will give you up to 5000 cycles at 100% capacity.
This battery is so good that even Tesla uses it for its electric cars. Besides, it’s also widely used as a battery bank for solar installations.
Great Space Efficiency
This battery is hailed for its space and weight ratio too. The same capacity LiFePO4 battery takes up one-third space of a lead-acid battery.
Besides, this battery is very lightweight. That’s why using it in cars does not hamper aerodynamics and speed.
Positive Environmental Impact
Since LiFePO4 batteries are not harmful and toxic; it does not harm our environment by polluting it.
Besides, there is not a single rare earth metal used in this battery. So, the impact of the environmental impact of this battery is very low compared to other batteries.
What Is Inside LiFePO4 Battery?
LiFePO4 battery is made from expensive components, which makes the battery very expensive altogether. But what’s inside this battery? Let’s dive deeper and try to understand its chemistry.
Lithium Iron Phosphate is a type of lithium battery. Instead of lithium-ion, this battery uses lithium iron phosphate as its cathode material. And as the anode, it uses a graphite carbon electrode with a metallic backing.
Its energy density is 325 Wh/L. With cycle durability of 2750 to 12,000 cycles, it will last about 10 years. You will get a 3.2V nominal voltage from each cell.
What Are The Cost Of LiFePO4 Battery Materials?
The reason LiFePO4 batteries are so expensive is the price of their components. This battery has different elements than lithium-ion batteries. And these components are pretty costly.
Let’s see the costs of LiFePO4 battery materials.
Lithium Iron Phosphate Cathode
LiFePO4 batteries have lithium-iron phosphate cathodes that are made from LFP Cathode powder. 500g of this powder costs about $280, which is pretty higher than other cathode materials.
Graphite Carbon Electrode
As the anode, LiFePO4 batteries use graphite carbon electrodes with a metallic backing. Generally, graphite carbon electrode costs about $4,000 per ton. Since this battery uses metallic backing with graphite carbon electrodes, the cost becomes even higher.
Aluminum Foil
LiFePO4 battery has aluminum foil that protects the battery cell from the outside temperature. The cost of aluminum foil is around $2,600 per ton.
Apart from these, a LiFePO4 battery has many more components inside, but these are the vital components that make the main difference from other batteries.
Here’s a table showing the prices of these components.
| Components | Price |
| Lithium Iron Phosphate Cathode | $280 Per 500 Gram |
| Graphite Carbon Electrode | $4,000 per ton |
| Aluminum Foil | $2,600 per ton |
The following table shows the price of the LiFePO4 battery and other batteries.
| Battery Type | Cost |
| LiFePO4 Battery | $137 Per kWh |
| Lithium-Ion Battery | $132 Per kWh |
| Lead-Acid Battery | $100 Per kWh |
| Alkaline Battery | $92.5 Per kWh |
Eng. Matthew Joseph Nandirio is the Founder of walkingsolar.
After graduating from the University of Houston in 2002, matt started working as a Solar Electrical Engineer for several multi-national solar energy companies.
He has a wide range of experiences including solar system requirement analysis, planning, maintaining, debugging and even solar device development through research.
He now shares his 20 years of expertise through his articles on the walkingsolar website.
Further, he is also the author of two books on Solar Technology, “Solar Power for Villages” and “DIY Solar System for Dummies”.