The David Lin Report China Controls 80% of Batteries: Can North America Catch Up?
Sep 29, 2025
John Passalacqua, CEO of First Phosphate Corp., dives into the critical future of lithium iron phosphate (LFP) batteries. He discusses how LFP’s growth is vital for energy storage and AI applications. John highlights Tesla's shift towards localizing their supply chains, addressing risks tied to Chinese dominance. He shares details about First Phosphate's Quebec project, aiming to produce North American LFP cells, and the strategic importance of their findings for enhancing local economies and building resilience in the battery supply chain.
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China's LFP Supply Dominance
- China currently controls the LFP cell supply chain and could disrupt EV and grid storage availability if it withheld shipments.
- Securing local LFP feedstock is therefore strategic for North American energy and transport resilience.
LFP Is Bigger Than EVs
- LFP demand is driven more by stationary energy storage and grid needs than by EVs alone.
- AI, data centers, and renewables amplify battery storage demand across residential and commercial sectors.
LFP Market Share Is Rapidly Rising
- LFP share of total batteries may already be 60–80% when all sectors are included, and could rise further.
- Nickel and cobalt shortages plus safety and cost advantages accelerate the LFP shift.