Ternary cathode material head enterprise intensive force lithium iron phosphate

On January 10, Green Mei announced that it would join hands with Xin Yangfeng to formally enter the field of lithium iron phosphate. The two sides will jointly build a globally competitive "phosphorus chemical resources-lithium iron phosphate material manufacturing-power battery recycling and reuse" new phosphorus chemical new energy materials industry chain.

This also means that the domestic cathode material enterprises engaged in the research and production of ternary materials and ternary precursors in the past, there are only a few domestic cathode material enterprises, such as Rongbai Technology and Zhenhua New Materials, which have not yet set foot in the field of lithium iron phosphate. Since last year, many enterprises, such as Dangsheng Technology, Huayou Cobalt Industry, Xiamen Tungsten New Energy, long-term Lithium Science, etc., which are mainly based on ternary materials and upstream resources, have begun to lay out lithium iron phosphate materials and upstream links in depth.

In the past, enterprises that have been engaged in ternary cathode materials and precursors for a long time began to get deeply involved in the field of lithium iron phosphate materials, which is undoubtedly based on the optimistic market demand of lithium iron phosphate.

From the perspective of market demand, the shipment of lithium iron phosphate cathode materials in China in 2020 is about 124000 tons, and the total production capacity of related production enterprises is only about 250000 tons. However, in 2021, benefiting from the "favor" of lithium iron phosphate batteries by automobile companies, battery companies have increased the layout of lithium iron phosphate battery capacity, resulting in a great increase in market demand for lithium iron phosphate materials. In the first half of 2021 alone, domestic shipments of lithium iron phosphate materials reached 178000 tons, exceeding the whole year of 2020; in terms of output, from January to November 2021, the output of 20 domestic lithium iron phosphate production enterprises has reached 377000 tons, and the annual output is expected to reach 425000 tons.

Behind the sharp increase in the production of lithium iron phosphate materials is the rapid outbreak of demand for lithium iron phosphate batteries. According to data from the Power Battery Application Branch, from January to November this year, the installed capacity of power batteries in the Chinese market reached 134.3 GWH, of which lithium iron phosphate installed was 67.38 GW, accounting for about 50.2%, an increase of 303.2%. The installed capacity of ternary batteries was 66.73 GW, accounting for 49.7%, an increase of 97.3%. Lithium iron phosphate batteries in the Chinese market have surpassed ternary batteries in an all-round way.

In fact, including Ningde era, Fudi battery, Guoxuan Hi-Tech and other enterprises have taken lithium iron phosphate battery as an important route, continue to increase the capacity layout of this route. In addition, leading enterprises, including Yiwei Lithium Energy, Honeycomb Energy, China New Airlines and Xinwanda, are also increasing the distribution of lithium iron phosphate capacity, which is expected to be released in 2022.

In addition to the Chinese market, affected by Tesla, Volkswagen, Daimler, Hyundai, Ford, Rivian and other international car companies in the attitude of lithium iron phosphate battery, including LG new energy, SKI and other foreign companies are also laying out lithium iron phosphate technology and production capacity.

At the same time, under the "double carbon" strategy, the electrochemical energy storage industry based on lithium battery is accelerating, and the demand potential for lithium iron phosphate battery is very huge.

It is under this background that the enterprises that used to focus on ternary positive electrode, precursor and upstream resources have also begun to enter the field of lithium iron phosphate cathode, precursor and upstream phosphate resources.

November 5, 2021, Huayou Cobalt Industry announced that the holding subsidiary Bamo Technology intends to acquire 100% stake in Inner Mongolia Sheng Vanadium Technology and expand the business of lithium iron phosphate materials. On November 7, Huayou Cobalt Industry and Xingfa Group signed a cooperation framework agreement to jointly invest in the integrated industry of phosphate mining, phosphorus chemical industry, wet-process phosphoric acid, iron phosphate and lithium iron phosphate materials in Yichang, Hubei Province. construction of 500000 tons / year of iron phosphate, 500000 tons / year of lithium iron phosphate and related supporting projects.

Prior to this, the layout of Huayou Cobalt Industry is mainly concentrated in the field of ternary battery materials, and a perfect ternary battery upstream resources, precursors, materials and recycling industry chain has been built. Driven by the turn of downstream customer demand, Huayou Cobalt began to formally cut into the field of lithium iron phosphate materials and resources through mergers and acquisitions and cooperation.

Also in November, Zhongwei also announced that the company and Dangsheng Science and Technology signed a "Strategic Cooperation Framework Agreement". The two sides decided to establish an omni-directional and multi-level strategic partnership in the development of Indonesian laterite nickel mine, investment in lithium iron phosphate industry and cooperation in overseas production capacity distribution.

Among them, in terms of investment in lithium iron phosphate industry, the two sides agreed to invest in the development of phosphorus resources, phosphorus chemical industry, iron phosphate, lithium iron phosphate, recycling of resources and supporting integrated industrial projects in Guizhou. The total production capacity of the project is planned and constructed not less than 300000 tons / year of iron phosphate, lithium iron phosphate and related phosphorus resources development and phosphorus chemical supporting projects, which shall be built in stages by both parties according to market conditions.

This marks Dangsheng Technology and Zhongwei shares, the two long-term main ternary cathode materials, precursors, officially join hands into the field of lithium iron phosphate.

Prior to the cooperation with Zhongwei, Dangsheng Technology had signed a strategic cooperation agreement with South Korea's SK Group, and the two sides agreed to cooperate in lithium iron phosphate business.

In December 2021, Xiamen Tungsten New Energy also announced that the company plans to set up Yaan Xiamen Tungsten New Energy Materials Co., Ltd. in a joint venture with Yahua Lithium Industry and Cangya Investment, which will invest in the construction of an annual production line of 100000 tons of lithium iron phosphate in stages. 20, 000 tons of lithium iron phosphate production line will be built in the first phase. So far, as one of the main ternary cathode material enterprises in China, Xiamen tungsten new energy has also entered the field of lithium iron phosphate.

On December 30 of the same year, long-term Lithium Co., Ltd. announced that the company's wholly-owned subsidiary long-term New Energy plans to invest 2.088 billion yuan to build an annual output of 60, 000 tons of lithium iron phosphate cathode material project. Another ternary cathode material enterprise "compromises" to lithium iron phosphate material.

Just entering 2022, Green Mei also followed the pace of several other ternary cathode materials and precursors and announced that it would join hands with Xinyangfeng to kill lithium iron phosphate cathode materials and upstream links. The two sides will set up a joint venture to start the construction of 150000 tons / year iron phosphate project and 100000 tons of lithium iron phosphate project.

Enterprises engaged in the R & D and production of ternary cathode materials and precursors have "defected" one after another. In the editor's view, apart from the fact that the above-mentioned enterprises are optimistic about the huge market space and prospects of lithium iron phosphate in the power battery and energy storage market, there are also the following reasons.

First, lithium iron phosphate material customers and ternary battery customers are highly coincident. Dangsheng Technology, Huayou Cobalt Industry, Green Mei, Xiamen Tungsten New Energy and long term Lithium are all major domestic manufacturers of cathode materials or precursors. The main customers include Ningde Times, LG New Energy, SKI, BYD, Yiwei Lithium Energy, Funeng Technology, Honeycomb Energy and other head battery enterprises. These battery enterprises have layout in the field of ternary and lithium iron phosphate batteries. For the above-mentioned material enterprises, entering the lithium iron phosphate market can further consolidate their relationship with customers, deepen bilateral cooperation and reduce risks.

Second, it has opened up the layout of the upstream industrial chain of lithium iron phosphate, achieving a stable supply of resources and cost competitiveness. Combing the layout of enterprises such as Dangsheng Technology, Huayou Cobalt Industry, Greenmei and Xiamen Tungsten New Energy in the field of lithium iron phosphate, we can see that the layout of related enterprises extends upward to the end of phosphate rock resources, opening up the entire industrial chain and achieving a stable supply of raw materials.

Third, almost all of them have the research and development capability and technical reserve of lithium iron phosphate. For example, Dangsheng Technology said that relying on the original mature technology reserves, sales channels and process preparation process, the company has developed high-performance lithium iron phosphate and lithium manganese iron phosphate materials; Xiamen tungsten new energy said that the company has lithium iron phosphate research and development capabilities and technical reserves.

In fact, because these enterprises engaged in the R & D and production of ternary cathode materials are high-tech enterprises in the lithium industry chain, the technical barriers to superimposition of lithium iron phosphate are not high compared with ternary materials, so whether they are involved in lithium iron phosphate products or their own lithium iron phosphate products are expected to be achieved in a relatively short period of time. And has a certain customer, market and technical advantages.