Iola Hughes: The incremental improvements in LFP are the most impressive

Iola is Head of Research at Rho Motion working on electric vehicle, battery, charging and energy storage market analysis, and has been with the company since its inception. Previous experience includes a research internship with a Servomex working on paramagnetic sensors and spectroscopy gas analysis. Iola graduated with a First-Class Honours Master’s Degree in Geophysics from University College London, with a year spent at the University of California. During her studies she was awarded the Hollingworth Prize for academic excellence. So, we asked her some insightful questions, and she shared some fascinating thoughts. Enjoy!

As someone deeply involved in the battery industry, what inspired you to focus on batteries and energy storage? How do you envision the role of batteries in shaping a sustainable future?

I have always had strong interest in renewables and energy systems, an interest which developed further during my Geophysics studies. EVs and batteries form an essential part of future energy systems, and I first became involved in Rho Motion in 2019 looking at batteries for EV applications, before we launched our first storage market data and analysis the following year. Batteries are not just enablers, they’re essential in supporting everything from grid stability to decarbonising transport and industry.

Lithium Iron Phosphate (LFP) and Nickel Manganese Cobalt (NMC) batteries have distinct advantages. How do you see the future of these technologies evolving, particularly in automotive, industrial application and grid storage applications?

Both chemistries have distinct value propositions. NMC, with its higher energy density, remains a strong choice for premium EVs, and some heavy-duty applications where range and high performance is critical. LFP, on the other hand, has gained significant ground, dominating the stationary storage market for the last few years and increasingly for mass-market EVs, due to its safety, lower cost, and improving energy density. I expect LFP to dominate grid storage and increasingly power entry-and mid-level EVs. In China, NMC share across all battery applications reached less than 30% in 2024 and is set to continue to fall, likely evolving into more niche, high-performance use cases. Outside of China NMC batteries will likely hold a place in the EV market for longer due to the dominance of Chinese in the LFP supply chain.

Iola Hughes

Batteries are vital to the green transition, yet their production has a significant environmental footprint. What innovations or practices can minimize this impact while scaling production?

Whilst recycling and creating a circular economy will be central to this in the long term, in the coming years some of the best practices will include sourcing materials in a sustainable manner, manufacturing using renewable energy and optimising processing efficiency through technologies like dry electrode coating and water-based binders to help reduce energy and chemical use in production.

Battery Energy Storage Systems (BESS) Expansion: The BESS market saw over 200 GWh of storage installed in 2024, marking a 53% year-over-year increase. What are the primary drivers behind this rapid growth, and how do you foresee the market evolving in the next few years?

The surge in BESS deployment reflects a convergence of factors: policy support, growing renewables penetration, grid flexibility needs, and rapidly falling battery prices. To date, however the majority of deployments have been relatively localised, with China accounting for over 70% of the grid installations, California and Texas the majority of US growth and the UK leading Europe. In the next few years, more markets are set enter the space, with new opportunities for developers around the world, as well as AI-driven optimisation and demand to define the next wave of growth.

Battery Manufacturing Innovations: In your podcast discussion with Modo Energy, you touched upon declining cell prices and lithium cost fluctuations. How are these factors influencing innovation in battery manufacturing, particularly in regions like Europe?

Declining cell prices and volatile raw material costs have forced manufacturers to become more agile. In Europe, this is catalysing investment in domestic supply chains, vertical integration, and process innovation. We’re seeing greater emphasis on cost-efficient chemistries like LFP, improved factory automation, and exploration of alternative materials, such as sodium ion, to reduce dependency on high-volatility commodities like lithium and cobalt.

Supply Chain Dynamics: Given the cutthroat competition in the BESS supply chain, what strategies should companies adopt to navigate the balance between global supply chains and domestic production, especially in light of potential tariffs and funding initiatives?

Navigating the BESS market supply chain is best dealt with through the ability to be flexible, diversifying suppliers and strategically onshoring (especially in light of tariffs/incentives). Securing long-term contracts for critical materials and batteries can protect from some level of price volatility. Additionally, collaborating regionally to share infrastructure and innovation. Success in this space will come from being both globally aware and locally responsive.

Fast charging is crucial for widespread EV adoption. What are the current technological hurdles, and how close are we to solving them?

In terms of technological hurdles, fast charging is limited from the anode side currently. As ultra-fast charging can lead to Li metal plating on the current collector and degradation of cell in long term. Using silicon anodes can help to mitigate some of the issues around it. Another challenge is heat generation during fast charging, this can be overcome by using good BMS and thermal management. Apart from the battery challenges, there are some issues around high voltage supplied by the grid, as the charging cables can overheat and break. So, there needs to be an optimum balance surrounding it.

Currently, some batteries companies offer 10 min charging rate from 20 to 80% for LFP and NCM based cathode chemistries and research is being conducted to reach 5 minutes.

Market Forecasts: With the global battery market projected to reach $423.9 billion by 2030,  the battery industry is witnessing rapid advancements. Which emerging technologies excite you the most, and why?

Rather than a new technology I would say the incremental improvements that have been made in LFP over the last few years have been the most impressive, with pack energy density approaching that of NCM, large format cells in storage boosting system energy density and cycle life, and its new focus on its fast-charging abilities. I am excited to see where it will progress to over the next few years, potentially by pairing it with silicon on the anode or via solid-state.

What role should governments play in advancing battery technology and ensuring sustainable energy adoption?

Governments can support onshoring of production and advancing technology by derisking investment via loans, grants and tax credits, while also easing processes such as permitting for new facilities and standardising regulations such as safety procedures and traceability. New technologies can also be supported by funding innovative new technologies around end of life, efficient processes and new chemistries.

Rho Motion – What is your role in industry and where do you see the potential for bigger impact?

At Rho Motion/Benchmark we aim to bridge data and insight, translating industry trends into actionable intelligence. Our work helps businesses and policymakers navigate the fast-evolving battery value chain from mine through to grid. I see huge potential to drive transparency, improve strategy, and ultimately accelerate the clean energy transition.

Recommendation for the Next Interview – If you could nominate one person for us to interview next, who would it be, and why? 

I would recommend William Bergh, from Cling Systems who can provide a unique perspective on supply chain and circularity.