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September 2025
The L(M)FP batteries market is accelerating, with forecasts predicting hundreds of millions in revenue growth between 2025 and 2034, powering sustainable infrastructure globally. The Lithium Manganese Iron Phosphate (LMFP) battery market is expanding due to capacity utilization and stability, which are favorable with LMFP batteries versus lithium-ion batteries, which helps with general acceptance and adoption of LMFP batteries in electric vehicle (EV) applications.
In addition, as a result of government initiatives for clean energy goals, demand for environmentally safe batteries is increasing. LMFP batteries are less expensive due to decreased costs associated with iron and manganese compared to cobalt and nickel. Increasing investment in energy storage for renewables is also supporting growth in the LMFP battery market. Moreover, enhancements in research and development CAPEX are presenting LMFP batteries to offer improved life and performance, which will provide more widespread acceptance across generational user platforms.
Lithium manganese iron phosphate (Li(Mn)FePO4 or LMFP) batteries are a variation of LFP chemistry that incorporates manganese into the iron-phosphate cathode to increase energy density while retaining LFP’s thermal stability, long cycle life, safety, and low-cost material base. LMFP cells are manufactured in cylindrical, prismatic, and pouch formats and are used across electric vehicles (passenger & commercial), energy storage systems (ESS), and portable power applications. The market covers cell manufacturing, module/pack integration, battery management systems (BMS), and lifecycle services (recycling, second life). LMFP’s value proposition is higher Wh/kg than conventional LFP with comparable safety, making it attractive for both mobility electrification and grid storage. LMFP batteries are developing an important role in the automotive sector, responding to the growing demand for electric vehicles globally. LMFP batteries are an indication of future energy storage for the commercial compliance of solar and wind energy supply, which will help offset peak demands for energy. With the world focused on clean energy solutions and worldwide reductions in carbon emissions, LMFP batteries are gaining importance in all industries.
| Metric | Details |
| Market Drivers | Cost reduction (iron & manganese vs cobalt & nickel), government clean energy policies, renewable energy storage growth, EV demand, R&D investments. |
| Leading Region | Asia-Pacific |
| Market Segmentation | By Chemistry / Cell Chemistry Variant, By Cell Form Factor / Format, By Energy Density / Performance Class, By Application / End-Use, By Voltage / Pack Architecture, By Formulation / Manufacturing Technology, By Battery Module / Pack Integration Level, By Charging Profile / Use-Case, By End-User / Buyer Segment, By Sales Channel / Commercial Model and By Geography / Region |
| Top Key Players | CATL, BYD, LG Energy Solution, Samsung SDI, Panasonic Energy, CALB, EVE Energy, Gotion High-tech, SVOLT, Sunwoda, A123 Systems. |
The trends in the L(M)FP batteries market are business expansion, product launches, and partnerships.
The standard LFP segment dominated the L(M)FP batteries market as they are established in the market for their safety, lower cost, and long cycle life. Manufacturers around the world have relied on this chemistry variant for EVs and stationary energy storage projects. The ecosystem around LFP, including the sourcing for raw materials, cathode production, and pack assembly, is well established and therefore makes scaling manufacturing far easier and more efficient. The maturity of LFP batteries supports standard LFP batteries to remain the market leader for many applications, particularly when utility and cost are a major concern.
The LMFP variants segment is expected to grow at the fastest rate in the L(M)FP batteries market as manufacturers are exploring alternatives to traditional LFP that improve their energy density without compromising safety and cost advantages. The addition of manganese attributes to an enhanced energy storage capacity of the battery, making it more attractive to electric vehicles that require a longer range. Automakers and battery producers are searching for alternatives with better performance at reasonable price points; therefore, LMFP is rapidly gaining interest.
The prismatic & pouch segment dominated the L(M)FP batteries market as they are the widely accepted cell formats for both automotive modules and energy storage system (ESS) pack assembly. These cell formats offer superior packaging density, which provides more space-efficient battery offerings with higher pack energy density in more compact designs. Further, prismatic and pouch cells offer more flexibility as many automakers prefer prismatic or pouch cells due to their ability to be shaped into more dynamic forms, and the same battery pack designs can be used in multiple vehicle models. Moreover, for stationary storage racks, the prismatic and pouch cell formats lend themselves to efficient stacking and space efficiency as well.
The cylindrical cells segment is expected to be the fastest-growing segment in the forecasted period, as they are cheaper to manufacture in volume, as well as provide better thermal management than other form factors. The shape of a round cell allows heat to distribute evenly compared to a square or even prismatic shape, and, thus, dissipate heat more efficiently. Moreover, this is important in high-performance applications to reduce the risks of overheating. The production of cylindrical cells scales better than prismatic cells due to the highly standardized and accepted production process that can equally benefit from an established design.
The standard energy density segment led the L(M)FP batteries market as it has the most developed production method and the lowest cost structure for L(M)FP batteries. Standard energy density batteries have sufficient capacity for many applications, including electric buses, entry-level EVs, and large stationary storage systems. Additionally, manufacturers have in place large-scale production lines dedicated to this segment, meaning lower costs and strong supply chains for any new model under development.
The enhanced / high-performance LMFP segment is expected to grow at the fastest rate in the L(M)FP batteries market because electric vehicle manufacturers are looking for longer range and higher efficiency while not significantly raising costs. By combining manganese in the cathode of LFP, LMFP shows improvement in energy density compared to standard LFP, allowing it to be more competitive with nickel-based batteries, which tend to be more expensive and less stable. Automotive manufacturers are seeking solutions that are cost-effective while offering range, safety, and price, and LMFP fulfills this demand. As mid-range EVs grow in popularity around the world, the demand for high-performance LMFP batteries will also increase.
The stationary energy storage systems & passenger EVs segment dominated the market due to having the largest installed capacity and greatest monetary value. While LFP batteries used in passenger EVs are leading, stationary energy storage systems have developed momentum with LFP and LMFP batteries to store solar and wind energy to enable sustainable, renewable power grids. Thus, we can highlight that both transportation and energy industries have a spike in demand for LFP, making passenger EVs and stationary ESSs the lead application areas.
The passenger BEVs & commercial EV fleets adopting the LMFP segment are expected to be the fastest-growing segment in the market because LMFP has a better range than almost all other LFP batteries, which is important for passenger EVs. Moreover, commercial fleet vehicles, including delivery trucks and buses, will have longer driving ranges at a lower cost as well. Safety and thermal stability are healthy contributors to the attractiveness of LMFP in fleet operations, particularly as manufacturers and fleet managers are focusing on cost, range, and durability.
The mid-voltage packs segment dominated the L(M)FP batteries market due to their widespread adoption between mobility and stationary energy applications. Mid-voltage battery packs are typically in the range between 48 and 400 volts. These packs can be utilized in passenger EVs, commercial vehicles, and large energy storage systems. Battery pack manufacturers and automotive OEMs prefer mid-voltage battery packs for their flexibility, proven safety, and existing compatibility with current EV platforms. Moreover, since most of the incumbent LFP and LMFP production and industry supply chains generally operate around mid-voltage power production, they represent the widest and safest application base.
The high-voltage LMFP packs segment is expected to grow at the fastest rate in the L(M)FP batteries market due to the trend in advanced EV, which balances faster charging capabilities with longer ranges. High-voltage systems allow charging at faster rates, and automakers are developing next-generation EV platforms to accommodate and support these higher voltage packs. Moreover, the safety and cost structure found with LMFP are attractive relative to nickel-based chemistries within these higher voltage pack systems. With an increasing majority of EV makers adopting a fast charging-ready model for their vehicles, packs that use LMFP chemistry and its high-voltage systems will continually expand.
The cathode active material (CAM) sourced LMFP powders segment dominated the L(M)FP batteries market as it is the original formulation used in the construction of LMFP battery cells. Since the CAM material in LMFP is the most critical material for battery performance, safety, and energy density, the increased output by manufacturers moving to large-scale production of LMFP powders will create increased supply and supply reliability for manufacturers. Moreover, CAM-sourced materials have robust manufacturing processes, some traceable back two decades, and when it comes to the integration of battery components into the battery supply chain, CAM formulations have direct access to the supply chain.
The coated LMFP segment is expected to be the fastest-growing segment in the forecasted period as it has benefits in performance, robustness, and cost reduction. Coating the particles improves conductivity and stability, which results in additional battery efficiency and cycle life. Companies are working heavily on the scaling of this process to allow suspects of coated LMFP to be consumable when scaling manufacturing. The coated LMFP formulation is increasing in prominence with the impending transition to clean energy systems in both automotive and stationary storage applications as the industry pursues the demand for high efficiency and cost-effective performance.
The pack-level integrated solutions segment dominated the market as it provides the greatest value to both the regulatory, automotive, and energy storage system (ESS) sectors. Pack-level integrated solutions are full battery packs that include thermal management, battery management systems, and safety features built in, that are ready to use in a vehicle or utilized for storage. Automakers and energy players like pack-level integrated solutions because they reduce assembly complexity and guarantee some degree of consistency in performance. Moreover, pack-level integrated solutions have significant value to the system as the system is ready to use.
The module-level and turnkey ESS solutions segment is expected to be the fastest-growing segment in the forecasted period due to demand from energy-system integrators and second-life applications. Energy companies increasingly want pre-made ESS battery modules that can be rapidly deployed into renewable energy storage projects. The second-life batteries from electric vehicles are supplying more batteries into the modular ESS market while also mitigating costs and prolonging the usage of batteries. This modular, flexible, move-in condition approach to batteries appeals to utilities and commercial buyers looking for simple, fast, and low-cost solutions.
The high-energy and long-cycle profiles segment dominated the L(M)FP batteries market. Long-cycle profiles enable users to use energy consistently over thousands of charging cycles; thus, they are deemed extremely dependable forms of batteries. For passenger EVs, they enable an adequate driving range while providing ESS systems with years of dependable life. In addition, they are favoured by OEM suppliers and end-users alike because they are a balance of energy output, safety, and price point. The ability of long-cycle batteries to hit both mobility and grid storage applications enables long-cycle battery solutions to stay in the dominant position in the charging solution category in the L(M)FP market.
The high-power LMFP variants segment is expected to grow at the fastest rate in the L(M)FP batteries market due to the growing demand for fast charging across mobility applications. These batteries are built to withstand higher charging currents, allowing batteries to charge in a significantly reduced amount of time, and at the same time, be safe. For vehicle manufacturers, fast charge capability is a crucial selling point to draw consumers in and compete with gasoline vehicles. This variant of LMFP chemistry enables this newer feature of rapid charge at lower costs and greater safety compared to nickel-rich batteries. Moreover, as fast charge infrastructure continues to be developed in every part of the Globe, high-power LMFP batteries are growing at the fastest rate in the market.
The automotive OEMs & Tier-1 integrators segment dominated the market as they secured the volume associated with large contracts and/or maintained the relationships and strategic partnerships with battery makers. Tier-1 suppliers complete the integration of batteries into vehicles and are responsible for ensuring that the cabinets have safe, efficient performance properties. The large scale of these partnerships and relationships, collectively with battery OEMs to manufacturer raw materials, allows for longer-term supply deals which provide a stabilizing option for L(M)FP battery manufacturers. Therefore, the OEMs and Tier-1 integrators compose the dominant end-user group in the L(M)FP battery market.
The energy utilities & commercial fleet electrification buyers segment is expected to be the fastest-growing segment in the forecasted period due to the rapid adoption of renewable energy storage and large-scale electrification projects. Energy utilities are deploying LMFP-based systems for grid stabilization and to store renewable energy at lower costs. Further adding to demand growth, commercial fleets, such as buses, delivery vans, and trucks, are advancing to LMFP battery options for safe, cost-efficient, and durable solutions. Therefore, their rapid growth of demand, fueled by government incentives and corporate pledges towards decarbonization, makes them the fastest-growing end-user segment in the L(M)FP battery market.
The direct OEM & long-term supply contracts segment dominated the L(M)FP batteries market due to the benefits, stability, reliability, and potential co-development opportunities. Battery manufacturers prefer to have a direct agreement with the automotive company to ensure they can fulfill their demand, which typically cannot change since the battery is needed for the new vehicle design. In formal long-term supply contracts, both parties agree on long-term pricing points and solutions for co-development, including pack design or performance opportunities (performance gain), depending on agreement terms. This supply channel has further benefits of reducing risks associated with raw material prices and creating a smooth plan for production cycles. The significance of the channel as a stable long-term supply point of sale is one reason for the importance of the channel for large-scale operations in batteries, as it is the primary type of sale in the L(M)FP market.
The EPC and project-based ESS procurement segment is expected to grow at the fastest rate in the L(M)FP batteries market as renewable energy projects are growing rapidly. Utilities and developers prefer to procure batteries through EPC firms that deliver complete storage systems that are bundled with solar and wind projects. Newly designed projects can be maintained on schedule and integrated easily with the entire project. With new capacity constantly being added globally to renewables, there will be a growing need for using ESS procurement through EPC contracts. The growth in large-scale projects of renewables plus storage keeps EPC and project-based procurement as the fast-growing sales channel within the L(M)FP battery market.
Asia-Pacific is the dominating region for LMFP batteries due to its huge manufacturing base and robust supply chain for cathode active materials (CAM). Countries in the region have the largest, heavily supplied factory capacity, skilled labor, and access to raw materials, such as lithium, manganese, and iron. Government support, low production costs, and demand for electric vehicles (EVs) further drive the market. Many global companies are forming partnerships and building factories in the Asia-Pacific region because of the scale and efficiency the region provides. Growth opportunities in Asia-Pacific include expanding exports, developing advanced recycling models, and meeting demand for energy storage at a grid scale. The Asia-Pacific region will continue to be a major supplier of LMFP batteries in response to growing demand for clean energy across the globe.
China is the leading country in the Asia-Pacific LMFP battery market, with the largest manufacturing capacity of batteries, and is a key player in the global supply chain. China produces large volumes of cathode materials, battery cells, and packs, leading the region in the LMFP battery market. China has a policy environment that is favorable to EVs and offers government backing and incentives for renewable energy storage, which provides China with an additional strategic advantage. Moreover, Chinese companies are also investing heavily in advanced research to improve battery performance and lower battery production costs. With its fully developed ecosystem encompassing raw materials, manufacturing capacity, and advanced technology, China is well-positioned to maintain its status as the LMFP production and export leader in the Asia-Pacific region.
Europe's LMFP battery market is growing rapidly as a result of favorable, policy-driven growth trajectories in electric mobility and renewable energy sources. The European Union has set ambitious targets for decreasing carbon emissions, leading to an increase in demand for electric vehicles and grid-scale storage. Additionally, LMFP battery companies in Europe are shifting towards local gigafactory developments to reduce reliance on imports from Asia. A range of programs and subsidies exists with the intent of fostering battery innovation and providing funding to companies seeking to expand their businesses. Furthermore, opportunities currently exist that supply the growing EV market, support the development of localized energy storage projects, and strengthen battery recycling systems. In summary, the European LMFP battery market growth is driven by policy, innovation, and demand for clean energy solutions.
Germany is the leading country in the LMFP battery market in Europe. The automotive industry of Germany has a strong emphasis on the transition to electric vehicles, which will drive significant demand for next-generation batteries. The German political system provides support for the local manufacturing of batteries in terms of subsidies and collaboration, and German carmakers are investing in local battery material research and battery integrations. Along with its engineering capabilities and a strong push from policies, combined with a large domestic automotive industry, Germany is uniquely situated to lead the LMFP growth in Europe.
The North American LMFP battery market is also witnessing rapid expansion driven by favorable government policies and localization initiatives. In the U.S., initiatives are underway to strengthen domestic battery production and reduce imports, while also rapidly advancing the adoption of clean energy. In addition, demand for LMFP battery technologies in electric vehicles and grid-scale energy storage projects across various parts of North America is increasing. New battery plants are being announced, and suppliers are confirming partnerships to secure electric vehicle (EV) supply chains with automakers. Furthermore, there are opportunities in the alternatives of robust local recycling systems, advanced energy storage capabilities for renewable energy, and greater EV adoption, as more financial investment and policies are announced to promote and sustain more growth in North America as a leading growth region for the LMFP battery industry.
The U.S. is the leading country in North America’s LMFP battery market due to its supportive government policies with tax credits, funding, and other supportive policies for the domestic battery manufacturing industry. Many new gigafactories are being built to service the booming electric vehicle market and renewable energy storage projects. U.S. automakers are collaborating with battery manufacturers to localize production, while research institutes are working to enhance LMFP battery performance. With its state of innovation, investment, and government support, the U.S. is positioning itself to be one of the key countries for LMFP battery adoption.
The raw materials required for LMFP batteries are lithium, manganese, iron, and phosphate to make the cathode and graphite for the anode.
After sourcing the raw materials, the components required for making LMFP batteries are cathodes, anodes, separators, and electrolytes.
The components are then integrated in the LMFP batteries which are then assembled in the electric vehicles.
| March 2025 | Announcement |
| Firebird Managing Director Peter Allen. | Manganese sulphate is a critical element within LMFP and our manganese processing knowledge and IP enables Firebird to drive significant value by co-precipitation. |
| June 2025 | Announcement |
| Cedric Duclos, Saft CEO. | We are delighted to combine our expertise with Safran to leverage our complementary skills and pool our resources. Joining forces with Safran will enable us to accelerate the innovation in high voltage battery systems to meet safety, performance and emissions reduction. |
The L(M)FP batteries market is highly competitive. Some of the prominent players in the market are A123 Systems, BMZ Group, BYD Co., Ltd., CALB, CATL, EVE Energy Co., Ltd., Farasis Energy, Gotion High-tech, Hitachi Energy/subsidiaries, KOKAM, LG Energy Solution, Microvast, Panasonic Energy, Samsung SDI, and SVOLT Energy Technology Co., Ltd. Firms operating in the Lithium Manganese Iron Phosphate (LMFP) battery space are concentrating on significantly increasing production capacity and developing robust technology advances to secure a better competitive position. Many battery companies are investing significant time and money in research and development to improve the energy density, charging time, and life of LMFP batteries. Moreover, most companies will look to establish partnerships with automotive customers and renewable energy providers to establish long-term supply contracts for LMFP batteries.
In addition, these firms will assess and execute methodologies to improve manufacturing processes and lower costs through temporarily obtaining and utilizing lower-cost raw materials. Opportunities for battery firms include expanding and increasing LMFP batteries, entering the expanding electric vehicle market, supporting renewable energy storage projects, and supplying batteries to consumer electronics. All battery manufacturers are looking to invest in recycling technologies to ensure that LMFP batteries are environmentally sustainable, and to provide products necessary to support LMFP's strong competitive position in this expanding marketplace.
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Tier 1
Tier 2
Tier 3
By Chemistry / Cell Chemistry Variant
By Cell Form Factor / Format
By Energy Density / Performance Class
By Application / End-Use
By Voltage / Pack Architecture
By Formulation / Manufacturing Technology
By Battery Module / Pack Integration Level
By Charging Profile / Use-Case
By End-User / Buyer Segment
By Sales Channel / Commercial Model
By Geography / Region
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