Frequent large orders! The overseas rise of lithium iron phosphate batteries

For a long time, due to its inferior range and low-temperature performance compared to ternary batteries, 

lithium iron phosphate batteries have been in a state of "blooming inside the wall and fragrance inside the wall", 

and overseas companies still mainly rely on ternary batteries.

In recent years, with the optimization of lithium iron phosphate batteries by companies such as CATL and BYD, 

coupled with their outstanding cost-effectiveness and safety performance advantages, 

many overseas companies have gradually changed their "bias" towards lithium iron phosphate batteries and joined the camp. 

Many international mainstream car companies such as Tesla, Volkswagen, General Motors, Ford, Northvolt, etc. 

have increased the installation configuration of lithium iron phosphate batteries. 

Even traditional international ternary battery giants such as Samsung SDI, LGES, SK On have announced plans to add lithium iron phosphate battery production lines.

Recently, there has been a continuous stream of news about lithium iron phosphate batteries internationally.

In the United States, ACT, the joint venture of EVE Energy, started construction in Mississippi in July this year, 

with a planned annual production capacity of approximately 21GWh square lithium iron phosphate batteries. 

It is expected to start shipping in 2026, and companies such as Daimler Trucks will become its main customers; 

In February last year, Ford and CATL announced that they would invest $3.5 billion to build a new lithium iron phosphate battery plant in Michigan, 

with an initial designed annual production capacity of approximately 35 GWh, also expected to start production in 2026.

In Europe, the Far East Power Spain factory started construction in July this year, 

which will develop and produce the latest generation of lithium iron phosphate batteries. 

After being put into operation in 2026, it will become the first lithium iron phosphate battery factory in Europe; 

Ampere, the electric vehicle business unit under Renault Group, 

announced that it will include lithium iron phosphate batteries in its large-scale production plan for electric vehicles 

and will collaborate with LG New Energy and CATL to establish a supply chain in Europe, providing Ampere with lithium iron phosphate batteries.

On July 2nd, South Korean battery giant LGES announced that it will provide LFP (lithium iron phosphate) soft pack batteries 

with a total capacity of 39GWh to Renault's electric vehicle division Ampere, 

which can be used by 590000 electric vehicles. This will be LG New Energy's first large-scale supply of lithium iron phosphate batteries. 

According to foreign media reports, Ampere also announced on July 1st that it will incorporate lithium iron phosphate technology into its mass production plan 

and establish a complete value chain in Europe with suppliers LGES and CATL factories. Starting from 2026, multiple Renault models will use LFP batteries.

In early June, according to foreign media reports, ACC, 

a battery company jointly established by Mercedes Benz and Stellantis, has stopped building battery factories in Germany and Italy 

and is considering switching to lower cost lithium iron phosphate (LFP) batteries to meet market demand.

On June 14th, according to Cummins China, Cummins' zero carbon emission business brand Accelera will start building a 21GWh factory in Marshall County, Mississippi, 

USA to produce differentiated lithium iron phosphate batteries, with plans to start production in 2027.

The export of lithium iron phosphate industry chain has increased significantly, and related enterprises are actively expanding their overseas layout

The demand for lithium iron phosphate batteries in overseas markets is also reflected in the overall growth of the lithium iron phosphate battery industry chain exports.

According to recent data released by the China Automotive Power Battery Industry Innovation Alliance, 

the export volume of lithium iron phosphate batteries in China from January to May this year was about 19.1 gigawatt hours, a year-on-year increase of 49.1%. 

According to the latest data released by the General Administration of Customs, 

the export volume of domestic lithium iron phosphate reached 177.9 tons in May 2024, a significant increase of 178% compared to the previous month.

Institutional analysis shows that although the total export volume of lithium iron phosphate is still small at present, 

mainly for overseas customers to conduct product testing and verification, in the future, 

with overseas enterprises completing multi-dimensional verification such as market and technology, 

China's export volume of lithium iron phosphate is expected to experience explosive growth.

In this context, many domestic lithium iron phosphate industry chain enterprises are seizing development opportunities, 

actively exploring overseas markets, and laying out through product exports, cooperation, and local factory construction.