# Lithium iron phosphate batteries: Impact and additionality How batteries push solar into the evening, and who gains Source page: https://www.materialinsights.org/energy/e_li_lfp/sg-impact/ What this tab covers The impact and additionality lens: what it displaces on the grid, who gains and who bears the burden along the supply chain, and what happens at end of life. LFP is the main tool for moving solar into evening peaks and is growing fast, but its supply chain runs almost entirely through China and its low-value materials make recycling hard to fund. #### Grid decarbonisation versus fossil displacement Favourable LFP's main climate role is to move cheap daytime solar into the evening, replacing gas or coal plants that would otherwise run at the peak. Most projects are around 2 hours, with more at 4 hours or longer, so they compete with gas peakers but cannot cover multi-day lulls. The IEA counts 108 GW of batteries added in 2025, 40% more than in 2024, with China about 60% of additions, and says solar plus batteries is already competitive with new coal in India. Embodied emissions are modest: a 2024 Chinese life-cycle study found about 91 kg CO2e covering manufacture, installation and end of life (use phase excluded). The paper states its functional unit as storing and delivering 1 kWh, but the size of the result only makes sense per kWh of battery capacity, which is how it is read here. Spread over one full cycle a day for 15 years (5,475 cycles), that is roughly 17 to 20 g CO2e per kWh delivered (calculated; the upper value allows about 15% for losses and fade, and charging electricity is excluded), a small fraction of the emissions from the fossil generation it displaces.^[6](https://atb.nlr.gov/electricity/2025/utility-scale_battery_storage)^[17](https://iea.org/reports/batteries-and-secure-energy-transitions/executive-summary)^[19](https://www.iea.org/reports/global-energy-review-2026/technology-battery-storage)^[23](https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2024.1361720/pdf) Battery storage added worldwide (2025) 108 GW, up 40%^[19](https://www.iea.org/reports/global-energy-review-2026/technology-battery-storage) China share of 2025 additions about 60%^[19](https://www.iea.org/reports/global-energy-review-2026/technology-battery-storage) Embodied emissions, LFP grid storage (China, read as per kWh of capacity) about 91 kg CO2e per kWh^[23](https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2024.1361720/pdf) Embodied emissions per kWh delivered about 17-20 g CO2e (calculated)^[6](https://atb.nlr.gov/electricity/2025/utility-scale_battery_storage)^[23](https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2024.1361720/pdf) #### Just transition and local community impact Mixed Manufacturing is concentrated: China held over 80% of global lithium-ion cell manufacturing capacity in 2025, and LFP cathode material production remains almost entirely Chinese. Lithium and graphite refining are similarly concentrated. For India, the opportunity is in cell and pack assembly and in system integration, but the cathode and graphite steps would still depend on Chinese inputs or technology licences. Mining impacts fall on lithium brine and hard-rock regions, with water stress in South America's salt flats a recurring concern.^[2](https://iea.org/reports/global-ev-outlook-2026/electric-vehicle-batteries) China share of lithium-ion cell capacity (end 2025) over 80%^[2](https://iea.org/reports/global-ev-outlook-2026/electric-vehicle-batteries) China share of LFP cathode material production almost all^[2](https://iea.org/reports/global-ev-outlook-2026/electric-vehicle-batteries) #### Circular economy and end of life Mixed Most recycling feedstock today is factory scrap, because batteries installed recently will run until the mid-2030s. LFP contains no cobalt or nickel, so recovered material is worth less. The IEA notes that resale value may not cover recycling for such low-value chemistries, and describes tolling models, in which the owner keeps the recovered material and pays the recycler a fee. China hosts over 85% of recycling capacity. EU rules require 50% lithium recovery from waste batteries by end-2027 and 80% by end-2031, and 6% recycled lithium in new batteries from 2031.^[2](https://iea.org/reports/global-ev-outlook-2026/electric-vehicle-batteries)^[13](https://www.iea.org/policies/16763-eu-sustainable-batteries-regulation)^[24](https://eur-lex.europa.eu/eli/reg/2023/1542/2023-07-28/eng/pdf) China share of global recycling capacity over 85%^[2](https://iea.org/reports/global-ev-outlook-2026/electric-vehicle-batteries) EU lithium recovery target 50% by end-2027, 80% by end-2031^[13](https://www.iea.org/policies/16763-eu-sustainable-batteries-regulation) EU minimum recycled lithium content (2031) 6%^[24](https://eur-lex.europa.eu/eli/reg/2023/1542/2023-07-28/eng/pdf) #### Sources 1. [Global EV Outlook 2026: Electric vehicle batteries](https://iea.org/reports/global-ev-outlook-2026/electric-vehicle-batteries) International Energy Agency, 2026 2. [Annual Technology Baseline 2025: Utility-Scale Battery Storage](https://atb.nlr.gov/electricity/2025/utility-scale_battery_storage) National Laboratory of the Rockies (formerly NREL), 2025 3. [EU Sustainable Batteries Regulation (2023/1542), policy summary](https://www.iea.org/policies/16763-eu-sustainable-batteries-regulation) International Energy Agency policy database, 2023 4. [Batteries and Secure Energy Transitions: Executive summary](https://iea.org/reports/batteries-and-secure-energy-transitions/executive-summary) International Energy Agency, 2024 5. [Global Energy Review 2026: Battery storage](https://www.iea.org/reports/global-energy-review-2026/technology-battery-storage) International Energy Agency, 2026 6. [Environmental impact analysis of lithium iron phosphate batteries for energy storage in China (Lin et al., Frontiers in Energy Research 12:1361720)](https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2024.1361720/pdf) Frontiers in Energy Research, 2024 7. [Regulation (EU) 2023/1542 concerning batteries and waste batteries (Official Journal text)](https://eur-lex.europa.eu/eli/reg/2023/1542/2023-07-28/eng/pdf) EUR-Lex, 2023 ## Other sections - [Summary](https://www.materialinsights.org/energy/e_li_lfp/index.md) - [Overview](https://www.materialinsights.org/energy/e_li_lfp/overview/index.md) - [Correlation](https://www.materialinsights.org/energy/e_li_lfp/correlation/index.md) - [Science and technology](https://www.materialinsights.org/energy/e_li_lfp/sg-sci/index.md) - [Engineering and performance](https://www.materialinsights.org/energy/e_li_lfp/sg-eng/index.md) - [Economics](https://www.materialinsights.org/energy/e_li_lfp/sg-econ/index.md) - [What to track](https://www.materialinsights.org/energy/e_li_lfp/tracking/index.md) - [Relationships](https://www.materialinsights.org/energy/e_li_lfp/links/index.md)