Lithium iron phosphate continues to be "tight". The investment enthusiasm of all kinds of manufacturers is rising day by day.

The rising trend in the price of lithium iron phosphate still shows no sign of stopping. Industry data show that on February 28th, the average price of domestic power superior product lithium iron phosphate has reached 150000 yuan / ton. At the beginning of 2021, the price of lithium iron phosphate was less than 40,000 yuan / ton, an increase of more than 200% in just one year. Market participants pointed out that the current market price trend of lithium iron phosphate is rising, the overall market negotiation focus is on the high side, inventory is tight, and downstream demand is exuberant.

Xixi all over the world is for profit, in the face of huge business opportunities, various manufacturers' enthusiasm for investment in lithium iron phosphate is also rising day by day. On February 28th, Fulin Seiko announced that the subsidiary Jiangxi sublimation will invest in the integration project of 200000 tons of new high-pressure solid lithium iron phosphate cathode materials and supporting main materials in Yichun. The project is expected to have a total investment of about 5 billion yuan and will be built in two phases. 2.5 billion yuan will be invested in each phase to build an annual production line with an annual production capacity of 100000 tons of lithium iron phosphate.

It is worth noting that Jiangxi sublimation, the main body of the Fulin Seiko expansion project, has just received an increase in capital in the Ningde era. According to the announcement issued by Fulin Seiko on February 16, Ningde Times plans to further increase its capital to Jiangxi sublimation, subscribing for registered capital of 144 million yuan. After the capital increase is completed, its shareholding proportion will rise to 20%, and Jiangxi sublimation registered capital will increase to 820 million yuan.

In addition to Fulin Seiko, Fengyuan shares also announced on February 25 that it had agreed that Shandong Fengyuan, a wholly owned subsidiary of the company, would invest 200000 tons of lithium battery high-energy cathode materials and related projects in Yuxi, Yunnan Province. Among them, the first phase produces 50, 000 tons of lithium iron phosphate cathode material and 1000 tons of clay lithium extraction pilot line, with a total investment of about 1 billion yuan. It's a lot of money, too.

Moreover, Fengyuan Co., Ltd. has also implemented the construction of a lithium battery cathode material production base in its "stronghold" of Shandong Taierzhuang this year, with a total investment of 3 billion yuan, mainly building an annual production line of 75000 tons of lithium battery cathode materials. Among them, the first phase invests 1 billion yuan and plans to build a production line with an annual output of 40, 000 tons of lithium iron phosphate cathode materials.

Earlier, on February 21, Chuanfa Dragon Python planned to invest 12 billion yuan in the construction of Deyang Chuanfa Dragon Python Lithium Power New Energy material Project in Mianyang, Sichuan Province, with an annual output of 200000 tons of lithium iron phosphate and 200000 tons of iron phosphate and supporting products. In mid-February, the first phase of the lithium-ion battery material industrialization project with an annual output of 200000 tons invested by Longbai New Materials, a wholly-owned subsidiary of Longbai Group, has been completed and entered the stage of trial production.

In recent years, lithium iron phosphate battery has been favored by more and more automobile companies because of its low cost and high safety. At present, the popular electric models with top sales in China, such as Wuling Hongguang mini, Tesla Model 3, Tesla Model Y, BYD Han, Mercedes-Benz, Chery eQ1 and Xiaopeng P7, which rank TOP10, have been equipped with lithium iron phosphate batteries. From a foreign point of view, BMW, Volkswagen, Hyundai and other mainstream car companies have also launched lithium iron phosphate models.

According to the Wood Mackenzie research report, cost and safety will continue to be the first factors that battery suppliers need to consider in a variety of battery application scenarios. Lithium iron phosphate is expected to become the dominant energy storage chemical in the next 10 years, and will gradually occupy a dominant position in the field of electric vehicles after gaining a foothold in the energy storage market.

In fact, as far as the domestic market is concerned, lithium iron phosphate has surpassed ternary batteries and become the first major technical route in the field of electric vehicles. According to data from the Power Battery Application Branch, the installed capacity of power batteries for new energy vehicles in China was 159.59 GWH in 2021, of which the installed capacity of lithium iron phosphate batteries was 81.69 GWH, a substantial increase of 251.7% over the same period last year, with a market share of 51.2%, exceeding the market share of ternary batteries.

In 2022, lithium iron phosphate battery is still "triumphant". According to data from the Power Battery Application Branch, the installed capacity of domestic power batteries in January was 16.59GWH, of which the installed capacity of lithium iron phosphate batteries was 8.77GWH, an increase of 168.4% over the same period last year (far exceeding the growth rate of RMB 49.5%), with a market share of 53%. It has exceeded ternary batteries for seven months in a row.

For the market in 2022, CITIC Securities Research News pointed out that the supply trend of electric models is improving, and the electric permeability is expected to further increase in 2022. Under the background of the prosperous electrification industry, from the point of view of the battery material market structure, the proportion of lithium iron phosphate battery has exceeded that of ternary battery, and many enterprises have further increased the expansion layout of lithium iron phosphate, while the expansion of ternary lithium lithium has slowed down. lithium iron phosphate battery is expected to continue to prosper.

Judging from the current technical route of domestic battery enterprises, almost all mainstream manufacturers are laying out iron lithium battery production lines, and it is needless to say that Ningde Times, BYD, Guoxuan Hi-Tech, Yiwei Lithium Energy, Ruipu Energy, etc., traditional ternary battery enterprises Honeycomb Energy, Funeng Technology, Xin Wanda and other battery companies have also begun to build or have produced lithium iron phosphate batteries.

In fact, even Japanese and South Korean battery manufacturers who have long adhered to the three-yuan route and are "dismissive" of iron and lithium are adding more. According to foreign media reports, LG New Energy has developed LFP batteries in Daejeon Laboratory in South Korea and is seeking cooperation with Lithium Battery Upstream Materials Company to complete the construction of a lithium iron phosphate battery test production line this year.

In November last year, foreign media Reuters reported that SK On, the battery division of SKI, was developing lithium iron phosphate batteries for electric vehicles. SK On's CEO said that lithium iron phosphate batteries perform well in terms of cost, safety and life, so more and more car companies are increasing the demand for lithium iron phosphate batteries. This is also the main reason why SK On decided to develop lithium iron phosphate battery. It is reported that Samsung SDI is also laying out iron-lithium batteries.

Today's market pattern is that lithium iron phosphate battery has occupied a relatively dominant position in the Chinese market because of its cost-effective advantage. according to the current layout of overseas market car companies and battery manufacturers, lithium iron phosphate battery will be increasingly internationalized in the future. According to previous estimates of the industry, by 2025, the global demand for lithium iron phosphate batteries will reach 600GWH, and the demand for lithium iron phosphate materials will be close to 2 million tons.

With the current strong growth momentum of lithium iron phosphate, this forecast may be conservative, and the global demand for lithium iron may exceed expectations in the future.