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Unraveling the Cost Mystery of Lithium Iron Phosphate Batteries

Unraveling the Cost Mystery of Lithium Iron Phosphate Batteries


In recent years, as the scale of renewable energy power generation continues to increase, the pressure on the power system to transmit and consume renewable energy has rapidly intensified. The development of energy storage technology has a vital impact on the future energy supply system. Subsequently, we can also find that batteries with the same specifications have many different prices on the market. We can then analyze the reasons and what kind of batteries we can use with confidence. In this article, we delve into a topic of the factors affecting the cost of lithium iron phosphate batteries.

What Are the Factors Affecting the Cost of LiFePO4 Battery?

Nowadays, the application of lithium iron phosphate batteries is becoming more and more popular in the development of society. This will cause us to think: What will affect its cost? Firstly, let's introduce you to the general components of the battery.

The components of the battery pack


We take a 12V lithium battery as an example, its components are lithium iron phosphate cells, BMS, brackets, signal lines including voltage sampling lines, temperature sensor, connecting lines, and the battery case, etc. The two most important cores are the battery cell and the BMS. In this guide, we delve into how different cells and BMS affect the cost of lithium iron phosphate batteries and help you make an informed decision.

Battery Cell


The battery cell, which is equivalent to the heart of the lithium battery, is mainly composed of positive electrode material, negative electrode material, electrolyte, separator, and casing. The battery cell grades on the market are divided into A, B, and recycling cells.

● Grade A Cells:  A-grade batteries refer to batteries whose parameters in all aspects meet the company's technical parameter requirements and have no abnormalities.

● Grade B Cells: It refers to the voltage, capacity, appearance, and slight defects when the factory produces the battery cell. Among all the parameters of the battery cell, some of the parameters that fail to meet the standard of Grade A are called Grade B.

● Recycling Cells: It refers to the high rate and performance of lithium batteries which was for electric buses, when the life and capacity did not meet the requirements, then disassembled and refurbished cells will still be assembled by some suppliers to supply storage energy market.

In general, slightly defective B-grade cells are cheaper than A-grade cells, and recycled cells are much cheaper than A- and B-grade cells. It can be seen that the use of different levels of battery cells is an important factor affecting the production cost of lithium iron phosphate batteries.

BMS (Battery Management System)


BMS is equivalent to the brain of the lithium battery. It is mainly composed of a protection chip (or management chip), MOS tube, resistor, capacitor, NTC and PCB board, etc., which mainly play the role of management and protection. And here are important points that affect the cost of BMS.

● Number of Mosfet: In the design and selection of Mosfets, we always consider redundancy, such as a 100A BMS. Our selection of Mosfets will consider at least 120A to ensure the stability of the BMS.

● Precharge Pack: The precharge pack can well prevent the impact and impact of an external large current on the battery. BMS with preventive battery packs will also increase battery production costs.

Fluctuations in Raw Material Prices

LiFePO4 batteries require specialized manufacturing raw materials (lithium, iron, phosphate, etc.) and strict quality control, so fluctuations in raw material prices can impact the market and subsequently affect the price of LiFePO4 batteries.

There are many factors that affect the cost of lithium iron phosphate batteries. In addition to the above-mentioned, factors such as market supply and demand and customer customization requirements will also affect the price of lithium iron phosphate batteries.

Choose MeritSun for Your Better Energy Storage

MeritSun is the market leader in lithium iron phosphate (LiFePO4) batteries in China. Experience the unmatched performance, safety, and reliability our cutting-edge LiFePO4 batteries offer:

● High-Performance Features: We strictly use grade A cells in our battery production. Our LiFePO4 battery cells provide the highest number of charge-discharge cycles, ensuring a longer-lasting and more reliable energy storage solution.

● Intelligent BMS: Our built-in Battery Management System (BMS) optimizes performance and prioritizes safety by automatically balancing cells and protecting them from overcharge, over-discharge, over current, short circuit, and extreme temperature conditions.

● Unrivaled Safety: Our batteries eliminate the risk of fires and explosions caused by overheating, providing peace of mind for you and your loved ones.


Market Applications of MeritSun Batteries

MeritSun Battery energy storage operates on a simple but effective principle. During sunny days, when your solar panels generate more electricity than your household consumes the surplus energy is intelligently stored in a connected battery system. This stored energy serves as a valuable reserve for times when the grid experiences an outage, seamlessly powering your household loads and ensuring an uninterrupted electricity supply. This not only enhances your energy self-sufficiency but also contributes to a more resilient and reliable home power system.


In short, the factors affecting the cost of lithium iron phosphate batteries are complex and diverse. As the leader in the lithium iron phosphate battery market, Meritsun can provide you with high-performance, sustainable, and cost-effective home energy storage solutions. Trust in our expertise and commitment to providing the best in lithium iron phosphate technology.

Make the smart, sustainable choice and join the MeritSun revolution!

By Christy

MeritSun Power Limited


MeritSun was founded in 1999, we have 24 years of professional experience in energy and integrated solution services. We have 100+ R&D teams,1368 employees,48 fully automatic production lines, and a 150,000 square meters factory, become the industry pioneers in battery suppliers through effective management.

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