In May, the loading of lithium iron phosphate batteries increased 4.5 times compared with the same period last year, which is expected to benefit from the list of stocks.

According to the China Automobile Association, in May, the number of cars loaded with power batteries in China was 9.8 GWH, up 178.2% from the same period last year and 16.2% from the previous month. Among them, the total loading of ternary batteries was 5.2GWh, up 95.3 percent from the same period last year and 1.0 percent from the previous year, while lithium iron phosphate batteries totaled 4.5GWhs, up 458.6 percent from the same period last year and 40.9 percent from the previous year.

In this month's power battery production, ternary battery and iron lithium battery still occupy an absolutely dominant position, accounting for 99.8% of the total power battery output in that month, but with the gradual release of lithium iron phosphate battery, the ratio is very different from that in the past, of which lithium iron phosphate battery production rose to 63.6% this month, far exceeding 36.2% of ternary batteries.

Huachuang Securities pointed out that lithium iron phosphate batteries are being favored by more and more mainstream models. Through nearly two years of technological innovation, the current range of 400 to 600 kilometers of lithium iron phosphate battery has been able to meet the needs of most passenger car owners, and has more advantages in terms of price.

It is worth noting that, as one of the most popular battery technology routes in the Chinese market, lithium iron phosphate battery has also begun to attract the attention of international big-name companies.

Apple is in talks with China's Ningde era and BYD on the supply of power batteries, according to several people familiar with the matter. Apple tends to carry lithium iron phosphate batteries for its upcoming electric cars.

In addition, a few days ago, a reporter from the Financial Associated Press learned from people familiar with the matter that domestic Tesla Model Y may plan to launch a lithium iron phosphate battery version of the (LFP) model in July, which will be equipped with Ningde era LFP batteries. Prior to this, the domestic Model Y was equipped with ternary power batteries supplied by LG.

The magnificent demeanor of the industry has also prompted lithium iron phosphate-related enterprises to expand investment one after another.

On June 10, Lin Yang Energy announced that it intends to set up a joint venture with Yiwei Lithium Energy to build an energy storage battery project of no more than 3 billion yuan.

On April 26th, Baichuan Co., Ltd. announced that it plans to build a project with an annual production capacity of 20, 000 tons of iron phosphate and 6000 tons of lithium iron phosphate.

On March 29th, German Nano announced that it intends to invest in the construction of a lithium iron phosphate production base with an annual production capacity of 150000 tons.

Chuancai Securities Research News pointed out that the return of lithium iron phosphate to the mainstream will make the relevant industrial chain share the development dividend of the industry. With the gradual landing of capacity expansion of various companies, the situation that supply of lithium iron phosphate batteries falls short of demand will also be alleviated. The increase in production capacity will also be conducive to the further expansion of the market for lithium iron phosphate batteries. It is recommended to pay attention to lithium iron phosphate related enterprises: Ningde era, BYD, Guoxuan Hi-Tech, German Nano, Yiwei Lithium Energy, Fulin Seiko, Penghui Energy and so on.