One more member in the snatch battle of lithium iron phosphate! Batian Co., Ltd. plans to invest 100 million to set up a subsidiary to produce iron phosphate products.

SMM Nov 5th noon news: Batian intends to invest 100 million yuan of its own capital in the wholly-owned subsidiary Batian New Energy Materials Co., Ltd., engaged in the production of iron phosphate and related supporting engineering business.

Barfield said in the announcement that the recent penetration of new energy vehicles is rapid, and the demand for new energy batteries continues to grow. Lithium iron phosphate battery has obvious advantages in cycle life, safety and cost, and has become one of the mainstream choices of lithium battery.

The company has obtained the mining right of Xiaogaozhai phosphate mine in Weng'an County, Guizhou Province since May 2020, and is currently in the stage of mine construction. According to the company's business strategic layout, the company plans to extend the product line downstream to meet the future needs of the market.

With its unique advantages, Batian New Energy will plan to produce iron phosphate and related by-products. According to previous data, 6.14GW ternary batteries were loaded in September, and lithium iron phosphate batteries totaled 9.54Wh.This is the third month in a row that lithium iron phosphate batteries have been installed more than ternary batteries. It is not difficult to see that lithium iron phosphate batteries with lower cost and higher safety are replacing ternary batteries or will become the mainstream of power batteries in the future.

According to the spot quotation of SMM, as of November 5, the average spot price of power lithium iron phosphate was 88500 yuan / ton, up 50500 yuan / ton or 132.89% from the beginning of the year.

"Click to view the price of SMM new energy products

For its future trend, SMM believes that the current demand for new energy vehicles is in the fourth quarter, the application proportion of new energy vehicle demand volume superimposed iron lithium battery in new energy vehicles is increasing, the uplink demand is gradually increasing, and the supply gap of iron and lithium is still there, which forms a support for prices. It is expected that the price of lithium iron phosphate will remain high in November.

It is worth mentioning that under the background of the vigorous development of new energy vehicles and the rising demand for lithium iron phosphate power batteries, many listed companies have begun to expand lithium iron phosphate production lines, and Barfield is not the only one. According to incomplete statistics, recently, a number of enterprises, including Chuanheng shares, Xiongtao shares, Wanpeng Company and Yuntu Holdings, have successively released their respective layouts in the lithium iron phosphate industry chain, and the future of lithium iron phosphate is worth looking forward to.

SMM believes that the power battery is expected to continue to release in the future, in the case of imbalance between supply and demand of lithium iron phosphate in the domestic market, iron phosphate may be used as a "sticking neck" link in lithium iron phosphate battery. Therefore, the layout of iron phosphate as soon as possible is particularly important for the cost control of power batteries in the future.