LFP dominates battery energy storage system (BESS) applications, accounting for more than 90% of installations, with North American growth led by grid and AI data centre storage. European demand is primarily driven by battery electric vehicles (EVs), with EV registrations across 17 European markets growing 33.7% in the first half of 2026.
The addressable LFP market outside China is estimated at approximately US$8-10 billion annually in 2026, forecast to grow to approximately US$40 billion annually by 2035.
Nano One also noted that government policy is increasingly supporting localised production. In the US, the National Defense Authorisation Act (NDAA) has placed restrictions on batteries from prohibited foreign entities (PFEs) starting in 2028, whilst maintaining the 45X manufacturing credit at US$35/kWh. The European Union and G7 have committed to diversified regional battery supply chains.
The International Energy Agency (IEA) has warned that Chinese export controls announced in October 2025 put downstream cell production capacity outside China at risk.
Nano One’s One-Pot process produces cathode materials directly from non-sulphate metals or oxides feedstock, bypassing the need for China-dominated precursor cathode active materials. The company claims that the technology also eliminates certain byproduct waste streams, potentially simplifying permitting processes.
