How to choose different types of lithium-ion batteries for forklifts

How to choose different types of lithium-ion batteries for forklifts
Lithium-ion batteries have four key raw materials, ranked by cost proportion as cathode material, separator, electrolyte, and anode material. Internationally, they are typically classified based on different cathode materials.



Performance Debate: Lithium Manganese Oxide vs. Lithium Iron Phosphate



The cathode material for non-power lithium-ion batteries is typically lithium cobalt oxide, while for power lithium-ion batteries, the current options are primarily divided into two categories: lithium manganese oxide and lithium iron phosphate. Japanese manufacturers strongly advocate for lithium manganese oxide and have already introduced several electric vehicles utilizing this cathode material, such as the Nissan Leaf. In contrast, manufacturers in the United States and China favor lithium iron phosphate, with A123 being a leading producer in this field.



Lithium iron phosphate exhibits exceptional performance. As a cathode material, it boasts a higher energy density than lithium manganese oxide (LiMn2O4: 100mAh/g, 0.400kWh/kg vs. LiFePO4: 150mAh/g, 0.495kWh/kg). Moreover, among all cathode materials, it has very low internal resistance, which results in a longer battery lifespan, reduced heat generation during charging and discharging, and high safety.
However, lithium manganate far surpasses lithium iron phosphate in terms of industrial maturity, cost, and consistency. Since lithium-ion batteries for electric vehicles are composed of dozens or even hundreds of connected battery cells, the demand for consistency is extremely high, which is the most challenging aspect for lithium iron phosphate.



The Battle for Cathode Materials: A Landscape of Global Rivals with an Unfavorable Upstream and Downstream Environment



Umicore, a Belgian company with an annual revenue of billions, has a key production base in South Korea. In 2010, driven by the surge in demand from South Korean firms LG Chem and Samsung SDI, Umicore surpassed Japan's Nanya Chemical to become the world's largest lithium-ion battery cathode material manufacturer, capturing over 30% of the market share. However, the profitability of lithium-ion battery cathode materials accounts for less than 10% of Umicore's total revenue



Nichia Corporation is the world's largest LED manufacturer and was also the leading global producer of lithium-ion battery cathode materials in 2010, with a market share exceeding 20%. Due to the wide variety of cathode materials for lithium-ion batteries, numerous manufacturers participate in the market, particularly Japanese companies such as Otokyo Industrial, AGC, SEIMI, SEIDO, TANAKA Chemical Research Institute, JFE Mining, Mitsubishi Chemical, Nitto Denko, Mitsubishi Mining, Sumitomo Osaka Cement (SUMITOMO?OSAKACEMENT), and Japan Chemical Industry. Japanese manufacturers account for approximately 50% of the cathode material market.



Chinese manufacturers primarily include Tansheng Technology (300073, stock forum), Shanshan, Ruixiang, Jinhui, CITIC Guoan (000839, stock forum), Mengguli, and Bamo Technology, accounting for 11% of the market share. It should be noted that BYD (002594, stock forum), a major electric vehicle manufacturer, sources its lithium iron phosphate from Tianjin Strontium. Lithium-ion battery manufacturers capable of producing cathode materials independently are typically limited to Japanese producers.