As the top seller of a low-cost variety, China's electric vehicle powerhouse, BYD, is becoming a formidable competitor to CATL, the industry leader in EV battery production.

When it comes to lithium-iron-phosphate (LFP) battery sales, BYD has taken the lead. Compared to standard lithium-ion batteries comprised of nickel, cobalt, and manganese (NCM), this variety is 20% to 30% less expensive.

Based on data from the China Automotive Battery Industry Innovation Alliance, BYD led the market with 43.7% of vehicles using LFP batteries in the first half of the year. BYD outperformed CATL with a 41.1% market share in the months of January through November, outpacing the latter's 33.9% share.

LFP batteries have traditionally been supplied by CATL, although BYD has been making inroads into the market. Using its own batteries in its own cars is one of BYD's many advantages.

Leading suppliers began to compete with one another in November, when CATL beat BYD to take a 36.5% market share for the month.

Contemporary Amperex Technology Co. Ltd., or CATL for short, is the leading global supplier of electric vehicle batteries. About 60% of the market for lithium-ion NCM batteries in China is held by CATL.

Because they use less iron and phosphorous than NCM batteries, LFP batteries are less expensive to produce, but they have lower energy densities and have had difficulty expanding their driving ranges.

However, starting in 2021, the volume of LFP batteries in China will surpass that of NCM batteries. During the first eleven months of this year, 339.7 gigawatt-hours of batteries installed in vehicles were made up mostly of LFP batteries, or almost 70% of the total.

A battery supplier's success depends on staying ahead of the curve, which is why BYD, CATL, and other rivals are now concentrating on the EV industry's transition to LFP in China.