Market Analysis of Energy Storage Batteries

1. Development Trends of Energy Storage Batteries

1.1. Gradual Replacement of Lead-Acid Batteries by Lithium-ion Batteries

Batteries are an efficient means of energy storage. Lithium-ion batteries, with advantages such as minimal environmental pollution, high energy density, long cycle life, and strong rate performance, are increasingly demonstrating their economic viability as their costs decrease. Their application in the energy storage market is becoming more widespread. Newly built battery storage facilities are increasingly adopting lithium-ion batteries, gradually replacing the existing stock of lead-acid batteries. In the future, the prospects for the development of the lithium-ion battery market for energy storage are significant.

1.2. Favorable Reception of Lithium Iron Phosphate Batteries

Among lithium-ion batteries for energy storage, lithium iron phosphate batteries are highly favored and represent the mainstream direction for the future development of lithium-ion batteries. This is primarily due to the economic considerations in battery production and usage, which focus more on factors such as battery cost, cycle performance, and overall lifecycle cost. Therefore, lithium iron phosphate batteries are highly favored for their low production costs and high cycle numbers.

2. Preferred Energy Storage Battery - Lithium Iron Phosphate Battery

In residential energy storage systems, energy storage batteries are among the crucial core components. Evolving from lead-acid batteries and nickel-cadmium batteries to lithium-ion batteries, lithium-ion batteries currently hold a significant market position in the field of residential energy storage due to their notable characteristics such as small volume, light weight, and long lifespan. Within the industrialized lithium-ion battery systems, there are three main types based on cathode materials: ternary lithium batteries, lithium manganese batteries, and lithium iron phosphate batteries. Considering safety performance, cycle life, and other performance parameters, lithium iron phosphate batteries are currently the mainstream choice for residential energy storage batteries. Key features of lithium iron phosphate batteries for residential use include:

2.1. Excellent Safety Performance

In the context of residential energy storage battery applications, safety performance is paramount. Compared to ternary lithium batteries, lithium iron phosphate batteries have a lower voltage platform of only 3.2V, while the material's thermal runaway temperature is much higher than that of ternary lithium batteries, at around 200°C. Therefore, lithium iron phosphate batteries demonstrate comparatively good safety performance. Furthermore, with the advancement of battery pack design and battery management technology, there is sufficient experience and practical application technology in managing lithium iron phosphate batteries, which has propelled their widespread use in the field of residential energy storage.

2.2. Superior Replacement for Lead-Acid Batteries

For a considerable period, batteries in the energy storage and backup power sectors have been dominated by lead-acid batteries. The control systems associated with them have been designed in accordance with the voltage range of lead-acid batteries, forming international and domestic standards or, one might say, a common usage habit. Among all lithium-ion battery systems, lithium iron phosphate batteries exhibit the best voltage compatibility after series connection with modular lead-acid batteries. For instance, the working voltage range of a 12.8V lithium iron phosphate battery is approximately between 10V and 14.6V, while the effective operating voltage range of a 12V lead-acid battery is mostly between 10.8V and 14.4V.

2.3. Long Lifespan

Among currently industrialized secondary batteries, lithium iron phosphate batteries boast the longest cycle life. According to the cycle count per individual cell, lead-acid batteries typically last around 300 cycles, ternary lithium batteries can currently reach up to 1000 cycles at most, while lithium iron phosphate batteries can exceed 2000 cycles. Moreover, with process upgrades and matured lithium replenishment techniques, achieving cycle counts exceeding 5000 cycles or even reaching 10,000 cycles is an achievable goal for lithium iron phosphate batteries.