Is it worth investing in lithium iron phosphate (LiFePO4 or LFP) batteries considering their initial costs? Renewgy's LiFePO4 batteries boast numerous advantages over lead-acid batteries, such as maintenance-free operation, longer lifespan, and faster charging time. Due to their extended lifetime, fewer battery replacements are needed. We delve into the total cost of ownership (TCO) of LiFePO4 batteries compared to lead-acid technologies, demonstrating how they could save you more money in the long run.
Do LiFePO4 Batteries Cost More Than Lead-Acid Batteries Over Time?
When it comes to the TCO, LiFePO4 batteries are more cost-effective compared to traditional lead-acid batteries, resulting in improved competitiveness and higher profitability. LiFePO4 batteries are sealed units that eliminate the need for electrolyte top-up or periodic acid adjustment, as well as equalization charges or cooling periods. Simply charge, plug in, and you're good to go. Given that lithium batteries last up to 10 times longer and require no maintenance, the savings on maintenance and replacement costs will offset the higher initial investment.
How Long Can LiFePO4 Batteries Last?
Renewgy LiFePO4 batteries can provide a minimum of 3,500 cycles at 80% depth of discharge (DoD), maintaining their performance. In contrast, lead-acid batteries typically have an average lifespan of only 500-1,000 cycles. By "life cycle," we refer to the charging, discharging, and recharging process of the battery. LFP batteries do not necessitate active maintenance to prolong their service life. They also exhibit no memory effects and, due to low self-discharge, can be stored for extended periods. In comparison, lead-acid batteries demand special maintenance; otherwise, their lifespan will be further reduced. In practical terms, this means an LFP battery will last about 10 times longer than a lead-acid battery.
Calculating the Total Cost of Ownership
To determine the TCO of Renewgy's 12V 100Ah lithium battery, we compared it to three common lead-acid Group 31 battery technologies: flooded lead-acid (FLA), Absorbent Glass Mat (AGM), and Gel, using a simple cost formula.
LFP Battery Cost Breakdown
The following elements contribute to the TCO of LFP batteries:
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Retail cost of the battery
This represents the largest cost of initial installation.
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Labor cost for battery installation
It should be done by a professional who may need to be scheduled and dispatched to the customer's site. While the labor cost for installing any battery type should be roughly the same, lead-acid batteries require the process to be repeated multiple times, as opposed to a single installation for the entire life cycle of a Renewgy LiFePO4 battery.
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Battery maintenance cost
Unlike lead-acid batteries, which need maintenance that includes checking and topping off water levels, cleaning acid residue, and replacing corroded components, LFP batteries require no maintenance throughout their life, making them a more cost-effective solution.
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Battery replacement cost
Lead-acid batteries will need to be replaced several times before an LFP battery requires replacement.
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Charging cost
The nominal cost of electricity for charging the battery, factoring in the need to overcharge lead-acid batteries to prevent stratification (lead sulfate accumulation on the battery's plates). We assumed an 80% DoD for all batteries before recharging was necessary.
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Battery life cycle
The number of cycles the battery will run until the end of its life is a critical factor in calculating potential savings from switching to lithium batteries.
We compared the lithium battery to other battery technologies and assessed the costs associated with each.
How Can Lithium Batteries Save Your Business Money?
If your business relies on electric-powered carts, material handling machines, or commercial cleaning machines, the benefits of lithium batteries can translate to significant cost savings in several ways.
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Full capacity utilization
LiFePO4 batteries provide 100% of their rated capacity, allowing an LFP battery-powered vehicle to travel 1.5 times longer or farther than a similar vehicle equipped with a lead-acid battery of comparable capacity.
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Faster charging
LFP batteries can charge up to 5 times faster than lead-acid batteries. Their rapid charge and discharge rates make them suitable for various applications, minimizing downtime and increasing efficiency.
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Opportunity charging
This eliminates the need for multiple batteries and battery changeovers, as batteries can be topped up during breaks or idle times. This reduces the risk of accidents during battery changeovers and removes the need for dedicated battery bays with forced ventilation and battery attendants, saving money and freeing up valuable space.
While LFP batteries are not the cheapest option on the market and have higher up-front costs than other battery systems, their longer lifespan and superior performance ultimately save you or your business money in the long run. If you'd like to learn more about the benefits of Renewgy lithium batteries, contact us, and we'll help you get started. To calculate your energy needs and find the optimal battery for your application and usage, visit our Lithium Battery Selector Tool. This tool will guide you through the process of selecting the most suitable battery based on your specific energy requirements, ensuring you make the most cost-effective choice for your needs. By embracing LiFePO4 battery technology, you'll be well on your way to realizing long-term savings and improved operational efficiency for your business.