Lithium iron phosphate material industry is "reshuffled"

Gaogong Lithium Battery 2024-05-19 20:38 Guangdong

GGII survey data shows that China's lithium iron phosphate material shipments will reach 1.65 million tons in 2023, a year-on-year increase of 48.3%, and the market share will be 66%, an increase of nearly 7 percentage points. In 2024, benefiting from the dual pull of the power and energy storage markets, GGII predicts that my country's lithium iron phosphate cathode material shipments are expected to exceed 2 million tons, and its share in cathode materials will further increase.

Shipment volume and growth rate of lithium iron phosphate cathode materials in China

(10,000 tons)

Data source: Gaogong Industry Research Institute of Lithium Battery (GGII), March 2024

At the same time, low-price competition and industry clearance will become the main theme of the industry in 2024:

1) The annual operating rate is low. In order to reduce production costs, companies will selectively start and stop production according to the rhythm. In 2024, lithium iron phosphate material companies will adopt measures to determine production based on sales, reduce finished product inventory, and large companies will reduce production and small companies will temporarily stop production.

2) Processing fees have reached a low point. In a buyer-dominated market, the purchase price of lithium iron phosphate began to be based on raw materials + processing fees, and companies had little say. In the first quarter of 2024, while the price of raw material lithium carbonate for lithium iron phosphate positive electrode materials was relatively stable at the bottom range of 90,000 yuan, the processing fee fell further by 2-3k/ton, posing a great challenge to the company's operating cost control.

3) Newly built/expanded projects were withdrawn, and the amount of new production capacity put into operation was significantly reduced, except for enterprises with clear orders from large customers.

4) Enterprises suffer large losses from self-produced iron phosphate, and it is more cost-effective to purchase iron phosphate from outside, and the self-sufficiency rate is no longer increasing.

In order to analyze in detail the market trends, technological trends, corporate competition situation and development strategies of China's lithium iron phosphate positive electrode materials, Gaogong Industry Research Institute (GGII) conducted in-depth investigations and research on the lithium iron phosphate positive electrode materials industry through online/on-site visits to companies, industry conferences, expert interviews, etc., and completed the "2024 China Lithium Iron Phosphate Cathode Materials Market Research and Analysis Report" in order to provide a reference for investment decisions of industry chain companies, investors, securities companies, etc.

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"2024 China Lithium Iron Phosphate Cathode Material Market Research and Analysis Report"

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Data range description

●The data in this report is updated to December 2023.

●Some of the data in this report are derived from field surveys and telephone surveys, and may differ from the actual data of enterprises and industries.