How Did China's LFP Batteries Get So Cheap?

[TaxmanHog]

How Did China's LFP Batteries Get So Cheap?

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[climateguy]

I'd never heard this claim before, i.e. that China didn't have to steal IP for batteries, as it was just handed over to them

(Starting at 11:55) [When] "...key innovations in carbon coating and process technologies were invented... [that] were patented by researchers at universities and public entities in Canada and Europe.

[then, only China was given access to all this for free]

All these patents were then consolidated into a single Swiss entity managing global licensing. According to the IEA, there was a deal made in the 2000s or 2010s that allowed the Chinese battery-makers to use these LFP battery patents for free, but only for their local markets. Everyone else had to negotiate for and pay a license fee. This strange sort of "patent shield" allowed the Chinese to lean into and build up proficiency in LFP. Meanwhile, the rest of the world's EV battery makers pursued non-LFP structures - hesitating at the patent licensing issue. These patents finally expired in 2022.

On one hand, this meant that foreign battery makers can finally access and use the LFP chemistry themselves without worrying about these licensing fees. But anyone trying to do that was starting out massively behind. Because in the years leading up to 2022, the Chinese battery makers had built up immense LFP supply chain proficiency. They had the cell-to-pack innovations, massive economies of scale, materials sourcing, talent pipelines, and more."