Sumitomo Metal Mining wants to start making materials for a cheaper type of electric vehicle battery — containing no nickel — that’s poised for global popularity after storming the world’s top EV market, China.
Iron-based batteries known as LFP have rapidly expanded their role in China as a lower-cost rival to varieties with nickel, especially in smaller and low-range vehicles. They could grab more than half of the global battery market in coming years, according to Katsuya Tanaka, an executive officer at Sumitomo, which already makes nickel-bearing materials for Tesla and Toyota cars.
"Carmakers won’t be able to procure enough batteries if only sticking to nickel-based types,” Tanaka, who heads the firm’s battery materials division, said in recent interview. "We will expand our lineup to meet customers’ need as we expect the market will be polarized into the two.”