German Nano, the leader of lithium iron phosphate, is expected to increase its production capacity by 30,000 tons next year. Its share price has risen 1.5 times in February.

SMM Network News: lithium iron phosphate prices rise, the industry leader German Nano is sought after in the secondary market, the stock price has increased nearly 1.5 times over the past two months. According to insiders, the company's capacity utilization is nearly saturated and is hoping to reach production capacity in the first quarter of next year, which is expected to release 30,000 tons of new capacity.

"the increase in product prices is mainly due to cost drive. The gross profit margin of lithium iron phosphate enterprises is relatively low this year. At present, the company's capacity utilization rate is nearly saturated, and the future thickening profits still need to be expanded. At present, several new production capacity projects of the company will be able to release about 30,000 tons by the first quarter of next year. " A German Nano insider said.

At the close of trading on November 24th, Germany reported 177.58 yuan, up 11.97% on the day, and has increased nearly 1.5 times over the past two months. In mid-November, lithium iron phosphate positive enterprises sent a letter to increase the price. At present, the average price of the industry has risen from the lowest 33000 yuan / ton to 35000 yuan / ton, an increase of about 2000 yuan / ton.

As for the reasons for the price increase, in addition to the cost drive mentioned by the above-mentioned people, there is also an increase in global demand for new energy vehicles during the peak season, driving the increase in the installed capacity of lithium iron phosphate. According to the statistics of the China Automobile Association, from August to October this year, the installed capacity of lithium iron phosphate power batteries in China increased by 100.2%, 146.1% and 127.5% respectively compared with the same period last year. At the same time, the demand for lithium iron phosphate in market segments such as 5G base station energy storage, electric ships, power tools and shared power exchange is also released rapidly.

According to public data, in the first half of 2020, China's total output of lithium iron phosphate was 48000 tons, with Germany accounting for 27.2% of the nanometer market. As for the trend of supply and demand in the later period, Societe Generale Securities pointed out that when high-quality production capacity is tight and demand is just right, in 2021, we do not rule out the phenomenon that the actual effective capacity of small enterprises is lower than the theoretical production capacity, and the industry may continue to be in a tight balance between supply and demand.