Again by the battery giant plus lithium iron phosphate is expected to continue upstream supply gap still exists?

CEO, a subsidiary of South Korean power battery giant SK Innovation CEO and SK On (battery business, revealed in an interview that the company has found that "car companies are interested in lithium iron phosphate batteries" and is considering producing lithium iron phosphate batteries for low-end electric vehicles. According to it, lithium iron phosphate batteries have advantages in terms of cost and safety.

It is worth mentioning that at the beginning of last month, there were media reports that another South Korean battery leader, LG Energy (LG Energy Solution), began to develop lithium iron phosphate batteries at the end of last year, and is expected to build a pilot production line next year at the earliest.

TheElec even pointed out yesterday that Apple and Rivian new electric vehicles are also considering carrying lithium iron phosphate batteries.

Lithium iron phosphate battery is rising again. Upstream materials are now in tight balance between supply and demand.

Prior to this, the main players in the field of lithium iron phosphate batteries have been Chinese manufacturers. Nowadays, overseas leaders are competing to join the competition, and it is not difficult to see the improving trend of lithium iron phosphate.

The first is the cost advantage. According to Huaan Securities, the cost of lithium iron phosphate is about 0.08 yuan / Wh,. Compared with ternary lithium battery, it can save 0.15 yuan-0.21 yuan / Wh, corresponding to a cost reduction of 65%. 72%. Under the current subsidy policy, the ternary lithium battery with a charge of 55kWh and a range of 405km is replaced by lithium iron phosphate battery, which can reduce the cost by 4600 yuan to 5600 yuan.

In addition, battery manufacturers have launched battery structure optimization programs, such as Ningde era CTP battery, BYD blade battery, Guoxuan Hi-Tech JTM battery, all improve energy density by optimizing module structure.

As a result, the more cost-effective lithium iron phosphate battery has returned to public view. Since the second half of last year, popular models such as BYD Han, Hongguang Mini EV and iron lithium version Model 3 have been launched one after another, driving the permeability of lithium iron phosphate batteries to increase continuously.

According to the data, the installed capacity of lithium iron phosphate in China reached 7.22 GWH in August, surpassing three yuan for two months in a row, while the output of lithium iron phosphate reached 37400 tons in the same month, increasing month-on-month for six consecutive months, both of which reached a record high.

Under the upsurge of downstream demand, Peng Guangchun, an analyst at Huachuang Securities, estimates that the global demand for lithium iron phosphate will be 2.17 million tons in 2025, corresponding to a market space of more than 83 billion yuan.

According to the company's announcement, the nominal production capacity of lithium iron phosphate in China will reach 897000 tons by the end of 2022, an increase of 87% over the same period last year. However, Huachuang Securities estimates that at an operating rate of 80%, the difference between effective supply and demand of lithium iron phosphate in 2022 / 2023 is expected to be 23800 tons / 13200 tons, and the industry is still in tight supply balance.

The high economy has even led the chemical industry leaders such as medium Nuclear Titanium dioxide and Dragon Python to concentrate across the border, trying to occupy a high point by virtue of their own phosphate resources, but Huachuang Securities said in the above report that most enterprises are precursors of iron phosphate. there is little information on the layout of lithium iron phosphate and its contribution to the marginal production capacity of the industry is limited in the short term.