A new chapter begins for EV batteries with the expiry of key LFP patents

The expiry of key patents for LFP battery chemistry in 2022 transformed the EV industry. With technology now freely accessible, global battery strategies are shifting as former IP barriers fall.

An LFP battery is a type of lithium-ion battery that uses lithium iron phosphate (LiFePO4) as the cathode material. LFP’s appeal in the EV sector is clear: lower cost compared to batteries based on nickel and cobalt chemistries, low toxicity and good safety due to their superior thermal stability. Tesla’s use of LFP in some of its standard-range models signalled the beginning of a broader trend, now accelerating across Western markets. LFP batteries are also proving a popular choice for renewable energy storage.

However, barriers to commercialisation of LFP technology remain. With the core chemistry now in the public domain, the focus of intellectual property protection has shifted. Companies are securing patents around secondary innovation, with a focus on enhancing energy density, improving safety, fast-charging capabilities and reducing costs. For example, CATL (Contemporary Amperex Technology Co. Limited) has developed and commercialised cell-to-pack technology with its Quilin battery. BYD and Tesla, amongst others, also own patents relating to LFP technology. Such proprietary engineering technology will still deliver competitive advantage. Trade secrets and manufacturing know-how are also becoming increasingly valuable.

Freedom-to-operate (FTO) analysis therefore remains critical for market entrants. Whilst the primary patents have expired, a dense web of secondary patents, covering additives, coatings, and production methods, still poses infringement risks. Firms entering the LFP space need to engage in increasingly nuanced FTO due diligence to navigate this residual IP thicket and minimise their risk of being on the receiving end of an infringement lawsuit.

Aside from the patent landscape, there are other structural and strategic barriers for exploitation of LFP technology:

• recycling economics: as LFP batteries lack high-value metals like cobalt and nickel, they are less attractive to recyclers. This poses a challenge in light of EU regulations requiring lithium-ion batteries to contain at least 6% recycled lithium by 2031, rising to 12% by 2036. Whilst companies are developing new capabilities, for example UK-based Altilium’s proprietary EcoCathode technology, which promises to recover 97% lithium and 99% graphite from used LFP cells, these technologies are in their infancy.
• supply chain dependencies: Western manufacturers remain heavily reliant on Chinese suppliers for high tap-density iron phosphate precursors (which allows for increased energy density in the battery) and cell manufacturing expertise.
• infrastructure misalignment: the UK’s charging infrastructure still needs to be significantly developed to encourage uptake of EVs.

In short, the LFP patent cliff is not the end of the story. Rather it is the beginning of a new chapter in EV innovation, where competitive advantage can still be obtained through further technological developments. For IP professionals and EV strategists, the task is to develop protection strategies that reflect this new paradigm. Effective trade secret and patent protection will be essential components of this, as well as the formation of strategic partnerships.