Lithium Iron Phosphate - Patent Wars

Patent Wars

Professor Goodenough at UT Austin, who discovered LFP of olivine structures more than ten years ago, probably would not expect that a micro material made of lithium iron phosphate (commonly used in fertilizers) could have such huge development and rapidly revolutionize many important industries. This prosperous development also elicits patent problems.

In the patent lawsuits in the US in 2005 and 2006, UT and Hydro-Québec claimed that every battery using LiFePO₄ as the cathode and the cathode material used in some lithium ion batteries infringed their patents, US patent No 5910382 and 6514640. The ‘382 and ‘640 patents claimed a special crystal structure and a chemical formula of the battery cathode material.

On April 7, 2006, A123 Systems, Inc. (“A123") - a company that commercializes LFP products - filed an action seeking a declaration of non-infringement and invalidity with respect to two patents, U.S. Patent No. 5,910,382 ('382) and U.S. Patent No. 6, 514,640 ('640) owned by UT. Meanwhile A123 also separately filed two ex parte Reexamination Proceedings before the United States Patent and Trademark Office (USPTO), in which they sought to invalidate the patents-in-suit based upon prior art.

In a parallel court proceeding, UT also sued Valence Technology, Inc. ("Valence") - a company that commercializes LFP products - alleging infringement of its '382 and '640 patents.

The USPTO issued a Reexamination Certificate for the '382 patent on April 15, 2008 and a Reexamination Certificate for the '640 patent on May 12, 2009, by which the claims of these patents were amended. This allows the current patent infringement suits filed by Hydro-Quebec against Valence and A123 to proceed. After a markman hearing, the Western District Court of Texas held on April 27, 2011, that the claims of the reexamined '382 and '640 patents have a narrower scope than as originally granted. This will most likely affect the outcome of any future LFP patent war involving these patents.

On Dec 9th, 2008, European Patent Office revokes Dr. Goodenough’s LiMPO₄ patent, patent number 0904607. This decision basically reduces the patent risk of using lithium iron phosphate in automobile application in Europe. The reason of this decision is believed to be based on the lack of novelty. While UT can still appeal the EPO decision, this result encourages the electric vehicle makers to pursue on lithium iron phosphate battery technologies in Europe.

While the patent war of LFP formulae and crystal structures is still going, it has involved many famous manufacturers of lithium batteries, such as Panasonic, ASEC (an energy supply subsidiary of Renault Samsung Motors), Johnson Controls-SAFT, Toshiba, Hitachi, Aleees, Enerdel, Altairnano, Mitsui Zosen, LG, Johnson controls, AESC, Valence, SAFT, ABB, E-one Moli. They are all trying to win this LFP patent war. The US government, too, has invested 55 million US dollars in LFP development.