[SMM Analysis]"LMFP + ternary" opens up new paths for cathode active materials

Regarding the breakdown of cathode active materials, LFP and ternary cathode materials are currently the two most used materials in the power battery sector. LFP has low costs but lacks energy density, which has always been its drawback. The energy density of mainstream LFP batteries is below 200Wh/kg, while ternary lithium batteries have an energy density between 200-300Wh/kg. In contrast, LMFP has a higher voltage platform compared to LFP, with a theoretical energy density 20% higher than LFP, partially overcoming the energy density bottleneck faced by LFP. In terms of costs, according to the SMM prices over the past three months, the average price of power-type LFP is 37,400 yuan/mt, 6-series ternary (monocrystal/power-type) materials average price is 125,000 yuan/mt, and the average price of LMFP is 52,000 yuan/mt. Compared with LMFP, power-type LFP prices are 28% lower, but 6-series ternary (monocrystal/power-type) material prices are 140% higher. Balancing cost and performance, the trend of upgrading LFP with manganese doping is clear.

Market introduction wise, currently, most LMFP batteries are mixed with multiple materials, opening cost reduction and efficiency improvement opportunities for mid-to-high-end models. The most common composite usage of LMFP and ternary materials achieves more balanced material performance. Compared with ternary materials, LMFP offers advantages of better stability, safety, affordability, and longer lifespan, but slightly lower energy density. Combining LMFP with ternary materials can create performance-complementary products for long-range electric vehicles. CATL's M3P battery is a typical mixed-use solution. Additionally, according to Ronbay Technology, their first-generation EV LMFP product mixed with ternary materials has been specified on the client-side and achieved initial mass production. In H1 2024, Ronbay Technology's LMFP shipments reached their total 2023 shipments, up YoY by 166%. With companies increasingly investing and achieving technological breakthroughs in the future, the competitiveness and demand for LMFP batteries will further increase.