【SMM Analysis】LFP Sees a 22% Month-on-Month Increase in April, Driven by Multiple Factors Boosting Market Demand

Published: May 10, 2024 19:13

Save

In April, China's lithium iron phosphate (LFP) production reached 167,530 tons, representing a month-on-month increase of 22%, a year-on-year increase of 109%, and a cumulative year-on-year increase of 69%.

On the raw material side, lithium carbonate prices fluctuated in April, while iron phosphate prices rose slightly. In April, the discount on lithium carbonate and processing fees in the price formula for lithium iron phosphate (LFP) at battery cell factories remained relatively fixed, with no significant adjustments, making it difficult for LFP costs to be passed down.

On the supply side, in April, the operating rates of leading LFP companies increased significantly, and orders from second- and third-tier LFP cathode material companies also increased as they actively explored new customers. Overall, LFP supply increased significantly in April.

On the demand side, as the price war among new energy vehicles continued in April, new models were launched, and trade-in policies provided stimulus, resulting in good performance of orders in the power battery market. Under the pull of multiple factors, downstream battery cell factories increased their production in April, significantly boosting the demand for LFP cathode materials.

In May, it is expected that the energy storage market will be driven by mid-year grid connection demand, leading to an increase in energy storage-type LFP. The demand for power batteries is expected to remain stable. It is predicted that China's LFP production in May will be 182,960 tons, representing a month-on-month increase of 9% and a year-on-year increase of 64%.

If you want to know more about this news and obtain charts about production, year-on-year and month-on-month mentioned in this news, please contact: joannexu@smm.cn

SMM price New Energy

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

[SMM Analysis] New Technologies in Lithium Carbonate Production: Pathways and Bottlenecks

1 hour ago

[SMM Analysis] August 2026 Lithium Carbonate Market: Mid-Month Rally, End-Month Retreat Amid Supply Recovery

1 hour ago

Special Action to Uphold the Bottom Line of Mandatory Product Certification: 108,500 CCC Certificates Suspended

It was learned today that the State Administration for Market Regulation has carried out an in-depth nationwide special action to uphold the bottom line of mandatory product certification, launching "random selection and public disclosure" supervision and inspection of certification bodies, covering all 34 CCC-designated certification bodies, 90 CCC-designated laboratories, and 300 voluntary certification bodies. To date, designated certification bodies have suspended a total of 108,500 CCC certificates involving 18,500 producer visits, and revoked a total of 44,900 CCC certificates involving 13,000 producer visits. Among them, more than 4,200 CCC certificates for power banks and lithium batteries that could no longer meet certification requirements were revoked or cancelled, effectively ensuring product quality and safety. At the same time, special governance of institutional filing and certification rules has continued. Since the beginning of this year, 50,200 rules have been reviewed, 30,300 were not filed, 17,700 were returned for rectification, and 2,186 were approved, ensuring high-quality certification activities through high-standard certification rules.

1 hour ago