LFP prices to extend declines as battery cell makers continue destocking

For the week ending December 21, LFP price continued to decline, with the market primarily dominated by long-term contracts. Falling lithium and iron phosphate price lowered LFP cost. Although energy consumption and prices rose in winter, the impact on costs was minimal. LFP manufacturers produced according to demand. Some LFP producers still had relatively high inventory levels and prioritised inventory reduction. Demand from both the EV market and energy storage markets went down, with battery cell enterprises continuing to deplete inventory, leading to a significant decrease in purchases of LFP. It is estimated that LFP prices will continue to decline.