Electric van operators could benefit from lower future EV prices after Bristol-based technology firm Anaphite secured £1.4m in funding to develop a more energy-efficient method of producing LFP batteries – a chemistry widely predicted to dominate next-generation electric vans.
The investment – split between Innovate UK and climate-focused investors Elbow Beach and World Fund – will expand Anaphite’s Dry Coating Precursor technology to lithium iron phosphate cathodes and graphite anodes.
LFP batteries are becoming increasingly common in electric vans due to their durability, lower cost and suitability for high-mileage commercial use.
Industry forecasts suggest LFP will account for more than 55% of global cathode demand by 2030.
However, manufacturing LFP cells is more than twice as energy intensive as producing NMC batteries, contributing to higher EV prices and slowing fleet electrification.
Anaphite’s dry coating process aims to reduce energy use in electrode production by around 30%, offering significant cost-saving potential for battery makers and, by extension, electric van manufacturers.
Joe Stevenson, CEO of Anaphite, said: “This enables us to attack one of the toughest technical challenges in dry coating – successfully manufacturing LFP electrodes. Once achieved at scale, it will be enormously valuable to the industry.”
If validated at scale, the technology could support more affordable electric vans, improve whole-life costs and accelerate fleet transition ahead of the 2030 and 2035 combustion engine phase-out deadlines.
Analysts note that cheaper battery production could translate into lower list prices, more accessible financing and greater choice for SME fleets adopting electric LCVs for multi-drop, urban or regional operations.
