SMM Analysis On China September LFP Production And October Forecast

In September, China's LFP production increased nearly 20% MoM and was up nearly 100% YoY. Boosted by the strong "September-October peak season," the LFP market showed robust momentum, with production continuing to rise compared to August. First and second-tier companies had relatively full orders, and this trend is expected to continue into October. Demand side, the peak season for downstream NEV and energy storage sectors arrived as expected, with battery cell production schedules continuing to increase MoM in September and October. The frequent release of new cars in H2 also boosted downstream power demand. The demand increase for overseas and domestic energy storage projects remained significant, especially for medium-sized LFP producers, which showed more notable growth in energy storage orders. It is expected that LFP production growth will slow in October but will still maintain a relatively optimistic production situation, with a high operating rate. Compared to September, LFP production is expected to remain flat MoM but increase nearly 100% YoY.