Lithium iron phosphate (LiFePO4) battery is emerging as power for eco-friendly vehicles.Since lithium iron phosphate battery is made of iron which is rich in the Earth, its price is 30-40% cheaper than lithium ion battery which is made of nickel, cobalt and manganese. Also, lithium iron phosphate battery is chemically stable with no possibility of explosion due to the overheat or overcharge. But, it is heavier and less dense than the existing lithium ion battery.On December 1, industry insiders said lithium iron phosphate battery is emerging as a cheaper and staler alternative to lithium ion battery used in electric and hybrid vehicles. Currently, Chinese companies like Thunder Sky and BYD are dominant players in the global market.Automakers in the US including Chrysler have raised the order for lithium iron phosphate battery for their hybrid and electric vehicles as they found the battery has strong merits in price and stability. Among those drivers who enjoy car tuning, lithium iron phosphate battery is replacing lead-acid battery. Korea and Japan which have focused on lithium ion battery will inevitably face a strong competitor in the vehicle battery market.Therefore, major battery makers in Korea like LG Chem and Samsung SDI began to consider the manufacturing of lithium iron phosphate battery in order to meet the growing demand in the hybrid and electric vehicle market. Hanhwa Chemical also announced that it will construct a factory for lithium iron phosphate by October, next year. The factory will begin the mass production of lithium iron phosphate which can be used in 120,000 hybrid vehicles in a year.Hanhwa will raise the output by 20 times by investing a total of KRW 300 billion by 2015.SK Energy also began to transform three luxury vehicles in order to test the performances of second batteries including lithium iron phosphate battery. These transformed electric vehicles are predicted to be used for the executives of the SK Group.E.I.G, a mid-size battery maker in Korea, began to produce lithium iron phosphate battery to meet the growing demands in the US hybrid vehicles. The company will produce 280,000 units by the second quarter of next year when its new factory is constructed and release a variety of battery packs for vehicles.Yoon Seok-joon, manager of EIG, said, “In future, the market for battery used in eco-friendly vehicles is likely to be divided to a high-end market for lithium ion batteries and a low-end market for lithium iron phosphate.”