[SMM Analysis] 2024 Ends! December LFP Production in China Released

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SMM December News: 2024 concluded perfectly, with China's annual LFP production totaling 2.34 million, up 84% YoY compared to 2023, and an annual operating rate of 50%. In December 2024, China's LFP production decreased 3.62% MoM, with a YoY increase of approximately 190%, and the overall operating rate slightly declined to 61%.

Supply side, LFP enterprises maintained relatively active production. Except for some companies that slightly cut production due to year-end reasons, the production of other companies remained stable MoM. Demand side, overall demand in January was robust, especially in the ESS sector, where demand YoY remained significantly supported due to overseas rush for installations. As year-end approached, the power sector saw strong production and sales. Coupled with the current low processing fee prices, downstream demand remained stable, and the overall reduction was not significant.

It is expected that in January 2025, the demand side will undergo changes. The ESS sector will be affected by the conclusion of the December 31 year-end grid connection, while the power sector will face the end of the trade-in policy. These factors are expected to lead to a significant MoM decline in LFP production, estimated at around 11.6%.

SMM New Energy Research Team

Cong Wang 021-51666838

Xiaodan Yu 021-20707870

Rui Ma 021-51595780

Ying Xu 021-51666707

Disheng Feng 021-51666714

Yujun Liu 021-20707895

Yanlin Lü 021-20707875

Ye Yuan 021-51595792

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Xiaoxuan Ren 021-20707866

Yushuo Liang 021-20707892

Jie Wang 021-51595902

Yang Xu 021-51666760