Nissan Aims for EV Price Reductions, Countering BYD's Dominance

Jan 31, 2024 02:46 AM EST

BACK VIEW OF A GRAY NISSAN SKYLINE — (Photo : PEXELS/SUPREET )

Nissan intends to manufacture lithium iron phosphate (LFP) batteries in its effort to reduce the cost of electric vehicles (EVs). Thanks to the more cost-effective materials used in their production, these batteries can be assembled at approximately 20% to 30% lower costs compared to lithium-ion batteries utilizing NCM. This strategic decision positions Nissan to directly challenge BYD, the prominent manufacturer of LFP batteries, as it seeks to cut EV prices and remain competitive in the market.

Nissan Cuts Prices, Produces Lithium Iron Phosphate Batteries (LFP)

Nissan is planning a new strategy to reduce cost and compete with BYD's popularity in the market. Furthermore, Nissan anticipates incorporating these newly developed LFP batteries into their electric vehicles (EVs) as soon as 2026.

They are currently aggressively looking for cooperative collaborations to progress this technology, and they are amenable to the idea of importing parts from outside sources to make their implementation easier.

Electrek shared a report from Nikkei, despite being outpaced by China's BYD in November passenger vehicle sales, Nissan has devised a strategy to recapture its market share. The company intends to commence the integration of more cost-effective LFP batteries into their electric vehicles, with the aim of launching these EVs in emerging markets as soon as 2026, as reported.

However, LFP batteries though cost-effective have their downside. Infact, though they offer cost savings of up to 30% compared to lithium batteries containing nickel, cobalt, and manganese (NCM), they exhibit lower energy density.

Electrek also cited a report revealing BYD's dominance in the market. In the LFP battery market, BYD held a commanding 41.1% market share until last November, while its closest competitor, CATL, followed closely behind with a 33.9% share.

According to SMM, Nissan is presently in the process of creating LFP batteries at its research and development facility situated in Atsugi, Kanagawa Prefecture, Japan. In addition to Nissan, Korean enterprises like LG Energy Solution and SK On, along with Samsung SDI, as well as various European and American battery and automobile manufacturers.

These car manufacturers include Our Next Energy, ElevenEs, Volkswagen, BMW, and Stellina, are intensifying their endeavors to establish a presence in the lithium iron phosphate battery sector. With an increasing number of companies entering the competition for lithium iron phosphate, there is a projected surge in its market share.

Lithium Ferrophosphate or Lithium Iron Phosphate (LFP Batteries)

LFP batteries like other things present its set of pros and cons. Among its benefits are extended cycle life and higher efficiency. According to reports, LFP batteries are projected to have a cycle life ranging from 3000 to 10,000 cycles, which translates to approximately 8 to 20 years of daily deep cycling. In contrast, Lead Acid batteries, commonly used in tropical settings, typically have a lifespan of about 1500 cycles or around 4 years.

While their maximum lifespan can extend up to 3500 cycles under specific conditions, this is contingent on limited cycling to a 35% Depth of Discharge (DOD) and consistent maintenance at 75ºF temperatures.

These are just two of the pros that LFP batteries have. Meanwhile, LFP batteries are susceptible to damage if they are either overcharged or undercharged, with high voltage (15 volts or higher) being a potential risk.

Over discharging them to the point of shutdown can also be harmful. It is crucial to avoid both overcharging (using high-quality equipment) and letting the batteries deplete completely (monitor voltage and recharge via a generator when necessary). It is not advisable to leave BattleBorn batteries connected to loads unattended for more than two weeks.