Lithium iron phosphate production slightly increases, cobalt market oversupply may continue

Analysis of Lithium Iron Phosphate Production

According to the latest data, the production of lithium iron phosphate in China reached 198000 tons in July 2024, 

with a slight increase of 1% compared to the previous month. 

Although July is traditionally considered the industry's off-season, 

battery cell manufacturers continue to adopt strategies of reducing inventory and increasing sales. 

The order situation of lithium iron phosphate enterprises shows a trend of mutual increase and decrease, 

and the overall market demand remains relatively stable. 

Looking ahead, it is expected that the production of lithium iron phosphate will further increase to 207800 tons in August 2024, 

with a month on month growth of 4.9%. 

This growth momentum mainly comes from the support of orders in the energy storage field, 

and the downstream market's demand for lithium iron phosphate rebounded in August, driving an increase in procurement volume.

Supply situation of cobalt market

Global mining giant Glencore recently issued a warning that the oversupply situation in the cobalt market may continue for up to two years. 

This judgment is based on the current market supply and demand pattern and future expectations. 

It is worth noting that Glencore's cobalt metal equivalent production in the first half of 2024 was 15900 tons, 

a decrease of 5800 tons compared to the same period in 2023, indicating a downward trend in production. 

However, the company also expressed confidence in increasing cobalt production through 

a series of measures in the second half of this year to cope with market changes.

Industry Outlook

Currently, the new energy industry is undergoing rapid development and profound transformation. 

As a key material in the field of new energy vehicles and energy storage, 

the change in production of lithium iron phosphate directly reflects the fluctuation of market demand. 

Although factors such as industry off-season and oversupply have had a certain impact on the market in the short term, 

the demand prospects for lithium iron phosphate are still optimistic with the continuous expansion of the energy storage market 

and the stable growth of the new energy vehicle market.

At the same time, the issue of oversupply in the cobalt market also reminds industry participants to closely monitor market dynamics, 

adjust production strategies and product structures in a timely manner, in order to cope with potential market risks. 

For mining giants such as Glencore, how to effectively control costs and improve product quality while ensuring production 

will be the key to gaining an advantage in market competition in the future.

In summary, the new energy industry is facing a series of challenges and opportunities coexisting. 

The steady growth of lithium iron phosphate production and the coexistence of oversupply 

in the cobalt market not only reflect the complexity and variability of industry development, 

but also provide more room for industry participants to think and adjust.