China’s adoption of lithium iron phosphate (LFP) batteries in electric vehicles surged 97% year-on-year in March, accounting for 82.3% of total vehicle deployment.

According to data from the China Automotive Power Battery Industry Innovation Alliance (CABIA), LFP usage in electric vehicles reached 46.6 gigawatt-hours. This compares to 10 GWh of the more traditional ternary batteries, for which installation declined 11.6% on-year.

Overall, China’s power battery installation volume rose 61.8% y-o-y in March, taking the year-to-date figure to 130.2 GWh. Of that, LFP batteries continue to dominate new EV installations with an 80.8% market share.

The LFP chemistry is cheaper than the traditional ternary chemistry, which integrates a cathode composed of three metals – commonly nickel, cobalt and manganese. However, it also has a lower energy density than lithium-ion batteries.

Yet, Chinese manufacturers such as CATL and BYD have been pushing boundaries and enhancing LFP technology, helping it to become a dominant force in China. Adoption is also increasing internationally as affordability remains one of the biggest barriers to electric vehicle uptake.

CABIA estimates that power battery sales increased 46.9% on-year to 87.5 GWh, accounting for 75.8% of all battery sales in March. These exports, meanwhile, rose only 11.3% to 13.9 GWh, reflecting the slower EV demand in markets outside of China.

Total battery production, which includes both power and energy storage batteries, rose 54.3% on-year in March to 118.3 GWh. During January-March, the volume reached 326.3 GWh, up 74.9%.

Last month, China saw its passenger EV retail sales increase 38% to 991,000 units and a penetration rate of 51.1%. So far this year, 2.42 million EVs have been sold in the country.