Tesla and BYD led a shift to cobalt-free LFP batteries, reducing costs and supply chain risks for electric vehicles.
Electric vehicle manufacturers have significantly reduced cobalt dependence by adopting Lithium Iron Phosphate (LFP) batteries. Tesla shifted its standard-range vehicles to LFP in 2020, while BYD introduced its Blade batteries, prompting broader industry adoption.
LFP batteries lower production costs and mitigate risks tied to cobalt supply disruptions. The transition reflects efforts to stabilize pricing and supply chains amid rising EV demand. Other automakers have followed, accelerating the decline in cobalt reliance.
The move has eased pressure on cobalt markets but may shift focus to lithium and phosphate supply dynamics.