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From Wikipedia:

The LiFePO4 battery uses a lithium-ion-derived chemistry and shares many of its advantages and disadvantages with other lithium ion battery chemistries. The key advantages for LiFePO4 when compared with LiCoO2 are improved safety through higher resistance to thermal runaway, longer cycle and calendar life, higher current or peak-power rating, and use of iron and phosphate which have lower environmental impact than cobalt. Cost may be a major difference as well, but, that cannot be verified until the cells are more widely used in the marketplace.

LFP batteries have some drawbacks:
The specific energy (energy/volume) of a new LFP battery is somewhat lower than that of a new LiCoO2 battery. Battery manufacturers across the world are currently working to find ways to maximize the energy storage performance and reduce size & weight.

Brand new LFP's have been found to fail prematurely if they are "deep cycled" (discharged below 33% level) too early. A break-in period of 20 charging cycles is currently recommended by some distributors. Rapid charging will shorten lithium-ion battery (including LFP) life-span when compared to traditional trickle charging.

Many brands of LFP's have a low discharge rate compared with Lead-Acid or LiCoO. Since discharge rate is a percentage of battery capacity this can be overcome by using a larger battery (more Amp-Hours).

While LiFePO4 cells have lower voltage and energy density than normal, this disadvantage is offset over time by the slower rate of capacity loss (aka greater calendar-life) of LiFePO4 when compared with other lithium-ion battery chemistries (such as LiCoO2 "cobalt" or LiMn2O4 "manganese spinel" based Lithium-ion polymer batteries or Lithium-ion batteries).

For example:
After one year of use, a LiFePO4 cell typically has approximately the same energy density as a normal, LiCoO2 Li-ion cell. Beyond one year of use, a LiFePO4 cell is likely to have higher energy density than a normal, LiCoO2 Li-ion cell due to the differences in their respective calendar-lives.
 
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