Lithium iron phosphate price increase is inevitable!

Near the end of the year, the person in charge of the battery factory reopened the tender for Ferrous lithium phosphate materials in the new year. The market is most concerned about whether the price can rise. Earlier, it was reported through the Internet that "the participating enterprise plans to raise the price of 1,000-2,000 yuan. As the manufacturers are close to full production, 90% of the suppliers have reached a consensus on the price increase."

So whether the price increase of 2000-5000 yuan/ton in Ferrous lithium phosphate mentioned in the above news can actually be realized depends on the results of the next bidding, but in any case, the price increase in Ferrous lithium phosphate seems to have become a prairie fire, and the momentum is unstoppable.

First, in 2025, the mainstream suppliers have almost no plans to increase production capacity. Although the demand is strong in 2025, there is a high probability that they can still maintain a growth rate of more than 20%; Secondly, the market demand for high-pressure solid products is getting higher and higher. At present, material companies want to improve the density more and more through secondary firing, but this will greatly reduce the output of the same production line compared with the primary firing process; Third, the iron phosphate industry has also suffered serious losses in the past two years, and the expectation of price increase is also very strong, which will drive up the cost of Ferrous lithium phosphate; Fourthly, after two consecutive years of losses in 2023-2024, some small and medium-sized Ferrous lithium phosphate materials enterprises are facing a critical situation of cash flow exhaustion, and they are unable to accept low-priced orders in 2023. However, even the leading enterprises may face the risk of bankruptcy if they continue to lose money; Five is the strength and willingness to take the loss of a single of the new forces, in 2024 through the low price strategy basically opened up the market to achieve a large number of shipments, and individual enterprises can even achieve full production, they continue to lose money to take the order of the resistance in 2025 is very strong; Sixth, although there are a lot of idle production capacity, there are many factors that limit the effective supply of this part of production capacity. For example, enterprises are subjectively unwilling to take orders at a loss, and the performance of products can not meet customer requirements.