From a material and manufacturing process perspective, lifepo4 (lithium iron phosphate) batteries do not contain rare metals such as cobalt and nickel (lead-acid batteries contain 60% lead), and carbon emissions in the manufacturing process are 40% lower than ternary lithium batteries (60 kg CO₂ per kWh of production vs. 100 kg). According to the 2023 report of the International Energy Agency (IEA), the raw material mining energy use of lifepo4 is only 30% of lead-acid batteries (1.2 kWh/kg of lithium iron ore mining vs. 3.8 kWh/kg of Lead ore. For instance, when Tesla Shanghai Gigafactory switched to lifepo4, the carbon footprint per annum of a single production line reduced by 120,000 tons, and the supply chain complies with the EU’s Battery Regulation (lead-acid batteries are banned to export due to heavy metal contamination).
Long lifespan and low waste ratio are the major environmental protection advantages. The lifecycle of lifepo4 can reach up to 5,000 times (300 times of lead-acid batteries), and the lifespan of a single battery pack is 13.7 years (mean one charge and discharge per day), reducing battery replacement frequency by 80%. According to US Environmental Protection Agency (EPA) estimates, by substituting 10% of the world’s lead-acid battery market with lifepo4, 120 million unwanted batteries and 5 million tons of lead pollution would be avoided annually (or 65% less landfill space). For instance, BYD had installed a lifepo4 energy storage system at its South African solar power project in 2022 that is meant to reduce battery wastage by 1,200 tons over a span of 30 years.
In recycling efficiency, the rate of metal recovery for lifepo4 is as high as 98% (80% for lead-acid batteries), and no risk of acid leakage during recycling (concentration of sulfuric acid mist produced by recycling of lead-acid batteries is ≥50 ppm). The EU Battery Circular Economy Act 2025 requires a recycling rate of over 95% for lithium batteries, and lifepo4 is easier to dismantle since it has stable chemical properties (270°C decomposition temperature). For instance, Redwood Materials recycles 99.7% of lithium and iron from lifepo4 through the application of hydrometallurgical technology, and the cost of recovery per ton is $200 lower than ternary lithium.
Improvement in energy efficiency leads to indirect emission reduction. The efficiency of discharging and charging of lifepo4 is 95% (80% for lead-acid battery), and when combined with solar power systems, it can reduce the reliance on fossil energy by 15%. Taking 10 kWh residential energy storage as reference, lifepo4 produces approximately 547.5 kWh clean electricity annually (with 20% loss from lead-acid batteries), or equivalent to a saving of 300 kg CO₂ (calculated based on the US power grid carbon intensity of 0.55 kg/kWh). The actual measurement of a California microgrid project shows that after the use of lifepo4, diesel generator running time has dropped from a daily average of 6 hours to 1 hour, and fuel usage by 1,800 liters per year.
Policies and markets drive environmental protection overhaul. In 2023, global lifepo4’s production capacity was 800 GWh (accounting for 45% of the total production capacity of lithium batteries), and the low-carbon characteristic of this has led to the lowering of the maximum carbon intensity value of new energy vehicle batteries to 60 kg CO₂/kWh by 2030 (the current standard is 100 kg). For instance, CATL’s lifepo4 battery pack for the BMW iX3 carries only a carbon burden of 58 kg CO₂/kWh for its entire lifecycle, reducing emissions by 38% compared with the ternary lithium alternative.