Lithium iron phosphate (lifepo4 battery) batteries continue to dominate the battery storage space in 2023 with their high energy density, compact size, and long cycle life. You'll find a wide range of applications for these batteries, from solar cells for off-grid systems to remote electric vehicles.

Although LiFePO4 batteries have been available for some time, questions about them remain.

How much do they cost?
Are they safe?
Are they the best for solar applications?

LiFePO4 batteries are a rechargeable lithium-ion technology that uses LiFePO4 cathodes and graphite anodes. However, they are chemically and structurally different from conventional Li-ion batteries.

LiFePO4 batteries are known for their high energy density, making them a popular choice for a variety of applications, including electric vehicles, renewable energy systems, and consumer electronics.

In addition, they are known for their long cycle life, capable of lasting thousands of charge and discharge cycles. This makes them a cost-effective option for applications that require frequent battery replacement.

LiFePO4 batteries have a lower nominal voltage of 3.2V compared to conventional Li-ion batteries, making them safer and more stable. They are also less likely to overheat and less likely to catch fire due to their excellent thermal stability.

Furthermore, these batteries offer fast charging capabilities, a high discharge rate, and a wide operating temperature range, making them ideal for high-performance applications in various environments.

Are LiFePO4 batteries safe indoors?
Lithium iron phosphate batteries are the safest lithium batteries available.

They are sealed in a hermetically sealed aluminum case specifically designed to withstand temperature, pressure changes, punctures, and shocks.

As a result, they are maintenance-free and, in addition, they all include a BMS (Battery Management System).

They are equipped with safety devices that monitor and control each individual battery cell. It protects them from overcharging/discharging, short circuits, and abnormal temperature fluctuations by disconnecting the affected battery cells. It also balances the battery voltage to achieve uniform charge/discharge levels.

Why are LiFePO4 batteries so expensive?
LiFePO4 batteries are known to be expensive, but are they really?

When it comes to energy storage, you can't just rely on the retail price of a battery. You must also calculate the total amount of energy (in kWh) that the battery can store and release (charge and discharge cycles) over its lifetime.

Reducing the retail price of the battery by this value will help you get a level cost of storage (LCOS) in dollars/kWh. This value helps to compare the actual value of different energy storage systems.

Uniform storage cost for 12V LiFePO4 battery.
Let's calculate the horizontal storage cost (LCOS) of a 100Ah 12V LiFePO4 battery using Li Time.

The battery currently retails for $309.99. During its 10-year service life, the battery can perform 6000 charge/discharge cycles at 80% DOD.

We assume a complete charge/discharge cycle once a day, with a total capacity of 1.2-kilowatt hours per cycle.

Using the above information, we can determine that the battery will be able to store/release a total of 5760 kilowatt hours within 10 years. Therefore, the LCOS of the battery will be 0.05 USD / kWh. This is much cheaper than the average electricity price of US residents ($0.156 / kWh).

In California, the average electricity price is $0.26 per kilowatt-hour. In addition, electricity prices are continuing to rise (at an average annual rate of 1.7% over the past decade).

Do you understand what we're talking about? Lithium iron phosphate batteries actually end up being incredibly cost-effective!