Lithium iron phosphate market growth exceeds expectations!

Recently, with the recovery of the power battery consumption market and the strong growth in demand for energy storage, the lithium iron phosphate industry has ushered in a new round of growth. Especially in the fourth quarter, the growth rate far exceeded expectations, and near the end of the year, contrary to the usual downturn, we still maintain a high operating rate.

According to SMM statistics, the overall capacity utilization rate of Ferrous lithium phosphate was about 60% in the fourth quarter, which was significantly higher than that in the first half of this year. This change not only confirms the warming trend of the market, but also reflects the overall growth of the industry, which is accompanied by the continuous homogenization competition.

From the perspective of technical iteration, Ferrous lithium phosphate industry is in a transitional period from the third generation to the fourth generation. In this context, the demand for high-end Ferrous lithium phosphate products is in short supply, and there is a strong expectation of price increases in the market. The cathode factories has more pricing power. SMM believes that with the continuous progress of technology and the upgrading of market demand, high-end products will become the new engine for industry development next year, and battery cell factories will also continue to innovate to meet the needs of market development.

Driven by the surge in market demand, a number of Ferrous lithium phosphate enterprises have shown strong production and marketing momentum. The products of top enterprises can basically achieve full production and full sales, and the prosperity of the industry can be continued, showing strong vitality in supply and demand.

Behind the booming demand in the lithium iron phosphate market is the rapid development of electric vehicles and energy storage. According to statistics, the cumulative installed capacity of power batteries in China has increased in the first 10 months, among which the proportion of lithium iron phosphate batteries has increased greatly. The domestic and international demand for energy storage is still quite large.

In terms of price, as the lithium iron phosphate market has been in a long-term loss-making state, companies have generally expressed a willingness to raise prices. Moreover, with the approach of annual negotiations and bidding, the game between cathode factories and battery factories will become more obvious.

It is worth mentioning that with the continuous improvement of the global demand for lithium batteries, leading Ferrous lithium phosphate enterprises are accelerating the overseas localization of production capacity. Examples include building factories in Indonesia and promoting the Ferrous lithium phosphate projects in Spain. These measures will not only help lithium iron phosphate enterprises expand their international market, but also further enhance their competitiveness in the global lithium iron phosphate field.