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NMC vs LFP – The Debate continues

29th March 2021

NMC vs LFP – Back in the News 

You may have read an article we posted some months ago following the concerns about a fire at an Arizona public facility. This was back in 2019 with the suspected cause being LG Chem Batteries. Sadly LG Chem have once again been in the news, this time with a product recall. Issued by the Australian Clean Energy Council (CEC) (link), this recall links a number of models with potential risk of fire and once again raises the question regarding home battery storage and safety.

There has been much debate about NMC battery chemistry vs LFP and the merits of each. We talk through the benefits and disadvantages of each type in our original article.

We wanted to follow up on our original piece as this is still, very much a hot topic. We understand that safety is top of everyone’s priority list when it comes to any home appliance or device. It’s why we PAT test appliance and devices in our workplace and look for safety certificates, labels and ratings on our home electricals and appliances.

Companies such as Tesla and LG Chem still use NMC (Lithium Nickel Manganese Cobalt oxide) in their very popular home battery storage models. With the safety concerns regarding this particular battery chemistry, is it a matter of time before this translates into other concerns such as insurance or warranty problems?

Fire is still one of the most expensive claims for insurance purposes wordlwide. Currently there are no known plans for insurers to specifically look at NMC Home Battery Storage. However, in light of recent developments and the recall of LG Chem Systems, is it only a matter of time before they do?

Imagine paying for a large system installation and then becoming unable to insure your home due to potential fire safety issues with your energy storage system? It may sound far-fetched but it is a possibility that you must consider.

Warranty claims and availability must also be contemplated. The long term credibility and reputation of these big brands may come into question if further fire safety issues arise.

Home safety. Our family, possessions and home are extraordinarily precious. 

At Soltaro, we take safety concerns seriously and that why we only ever use LFP cells in our batteries. As LFP  (Lithium Ion Phosphate) batteries are more stable and simply don’t pose a fire safety risk. They have a wider temperature range than NMC cells before thermal runaway or cell damage is possible, making them a far safer choice. As such, they provide a much more attractive alternative for home energy storage along with many other benefits.

So far only a small number of systems have been recalled. However, with battery storage usage growing at a rapid rate, we advise that anyone considering investing looks at all the factors before making their decision.

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