(Ecofin Agency) - • LFP battery market expected to grow 16.9% annually and reach $90.3 billion by 2034
• China leads global adoption, while Europe sees growing interest in LFP technology
• OCP sets sights on becoming a key LFP supplier by 2027 with $13 billion green plan

Lithium iron phosphate (LFP) batteries are carving out a larger share of the global electric battery market, and demand is only going up. A recent forecast by Research and Markets predicts that the LFP battery sector will grow at a yearly rate of 16.9% between 2024 and 2034, hitting $90.3 billion by the end of the decade. This projection aligns with the ambitions of Moroccan phosphate giant OCP, which is actively preparing to enter the LFP supply chain by 2027.

In 2022, lithium-nickel-manganese-cobalt (NMC) batteries still dominated, accounting for 60% of electric battery sales, according to the International Energy Agency (IEA). Yet that same year, LFP batteries reached a 30% market share, marking their highest level in over a decade. This surge was mainly driven by China, the world’s largest battery supplier.

China’s electric vehicle (EV) market shows just how quickly LFP technology is taking over. In 2022, LFP batteries powered 62.4% of EVs sold in the country. By 2024, that figure rose to 74.6%. A similar trend is emerging in the European Union. While nickel-heavy batteries still dominate in Europe, making up 76.7% of EV sales in 2024, LFP batteries are closing in. Their market share in the EU climbed from 2.9% in 2022 to 10.5% in just two years.

Then BYD launched its "Blade Battery" - an LFP battery that:

• Uses no expensive nickel or cobalt
• Charges to 80% in 30 minutes
• Has unprecedented safety (can be punctured without catching fire)
• Costs 30-40% less to manufacture pic.twitter.com/9VZ7iIrc6q

— Christopher Ho (@Chr1stopherHo) March 12, 2025

Research and Cost Trends Fueling the Shift

The growing popularity of LFP batteries comes down to a few clear reasons, according to the “Lithium Iron Phosphate (LIP) Battery Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025–2034” report from Research and Markets. First, there is a rising global need for reliable and scalable energy storage. Second, the raw materials required for LFP batteries are more affordable. Third, the metals used in other battery types, such as cobalt and nickel, are often linked to geopolitical tensions that disrupt supply chains.

Unlike conventional lithium-ion batteries, which rely on expensive and politically sensitive elements, LFP batteries are built with iron and phosphate. These materials are cheaper and easier to source. According to the report’s authors, unlike traditional lithium-ion batteries, which depend on expensive and geopolitically sensitive materials such as nickel and cobalt, LFP batteries use iron and phosphate, which are more cost-effective and abundantly available. This cost benefit supports large-scale adoption in various applications. 

The IEA supports this assessment, noting that years of development, mostly led by Chinese manufacturers, have helped LFP batteries become around 30% less expensive than their closest competitor, the NMC battery. Although LFP batteries were once considered unsuitable for electric cars, they now power nearly half of all EVs worldwide. Their market share has more than tripled in just five years.

OCP’s Strategic Move into the Battery Sector

The strong outlook for LFP batteries is encouraging Morocco’s OCP to move quickly. From producing zero tons of battery-grade material in 2021, the group aims to deliver 30,000 tons of intermediate products for LFP batteries by 2027.

To support this ambition, OCP’s innovation arm, InnovX, announced a major new initiative in 2024: Mera Batteries. This project aims to produce 1 GWh of fully Moroccan-made LFP batteries by 2026. In early 2025, Moroccan outlet Barlamane reported that OCP had entered discussions with Chinese firm Zhongwei to supply it with refined phosphate for LFP battery production.

I strongly believe that there should be a LFP battery plant in Morocco in partnership with Tesla + CATL + OCP, in order to deliver two sorts of products
1. stationary batteries (ESS) for the grid.
2. battery packs for the car industry.

PDF Tesla Master Plan 3@elonmusk @omead pic.twitter.com/AJZVIKhHJU

— Khalil Amar ??? (@khalilamar) June 16, 2023

This push into the battery market is part of OCP’s broader shift toward clean energy and industrial diversification. In 2022, the company introduced its “Green Investment Strategy” for the 2023–2027 period. The plan includes a total investment of around $13 billion. Beyond LFP, the strategy also covers efforts to expand fertilizer output from 12 million tons in 2021 to 20 million by 2027, launch green ammonia production at a volume of 1 million tons, and develop 5 GW of renewable energy capacity from scratch.

Still, OCP has not said how much of its future income will come from battery-related products. In 2024, the company generated revenue of 96.98 billion dirhams ($10.5 billion). Most of that—69%—came from fertilizers, while phosphate rock and phosphoric acid each contributed 10%.