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NMC vs LFP battery cathode chemistry
What it is
The two dominant lithium-ion cathode chemistries. NMC uses nickel, manganese and cobalt for high energy density and better cold performance; LFP uses iron and phosphate, sacrificing density for lower cost, longer cycle life and greater thermal stability
LFP has taken share globally as cost and safety outweighed range, and suits Indian conditions and price points particularly well
Impact on industries
- LFP removes cobalt and nickel from the bill of materials, cutting both cost and exposure to concentrated, politically sensitive supply chains
- Thermal stability matters disproportionately in Indian ambient temperatures, and cycle life suits high-utilisation two- and three-wheeler and grid applications
- Lower energy density means more weight and volume for the same range, which constrains premium passenger EV applications where NMC still wins
- Chemistry choice locks in equipment and process design, so a cell plant is not easily switched later - a strategic bet made at the capex decision