[SMM Analysis] "LMFP + Ternary" Opens a New Path for Cathode Active Materials

SMM, Sep 13: Segmenting by cathode active materials, LFP and ternary materials are currently the most commonly used in the power battery sector. LFP has a cost advantage but suffers from insufficient energy density, with the mainstream LFP battery energy density being below 200Wh/kg, while the ternary lithium battery's energy density ranges from 200-300Wh/kg. In comparison, LMFP has a higher voltage platform than LFP, with a theoretical energy density 20% higher than LFP, somewhat breaking through LFP's energy density bottleneck. In terms of cost, according to SMM prices from June to September 2024, the average price of LFP (power battery type) is 37,400 yuan/mt, the average price of 6-series ternary materials (monocrystal/power battery type) is 125,000 yuan/mt, and the average price of LMFP is 52,000 yuan/mt. Compared with LMFP, LFP (power battery type) is 28% cheaper, but 6-series ternary materials (monocrystal/power battery type) are 140% more expensive. With the cost and performance trade-offs, the trend of manganese-doped LFP upgrades is clear.
From the perspective of market adoption, most LMFP batteries are currently mixed with multiple materials, creating space for cost reduction and efficiency improvement in mid-to-high-end car models. The most common composite use of LMFP and ternary materials achieves more balanced material performance. Compared to ternary materials, LMFP advantages include greater stability, safety, lower cost, and longer lifespan, while its disadvantage is slightly lower energy density. The composite coating with ternary materials can create a diversified product with complementary performance, suitable for long-range electric vehicles. CATL's M3P battery is a typical mixed-use solution. In addition, according to Rongbai Technology, its first-generation EV LMFP product with a mixed ternary scheme has been locked in client specifications and achieved the first batch of mass production. In H1 2024, Ronbay Technology's LMFP shipments reached the total shipment volume for all of 2023, up YoY 166%. As companies continue to expand their layout and achieve technological breakthroughs in the future, the market competitiveness and demand for LMFP batteries will further increase.