LMFP Market Remains Stable in September, Average Price and Production Down MoM[SMM Analysis]

SMM reported on October 21:

In September, LMFP prices fluctuated slightly due to limited current market demand, putting pressure on prices. Production side, LMFP production slightly declined in September.

Regarding LMFP prices in September, LMFP prices fluctuated slightly, with an average price between 50,400-51,000, also due to significant price differences in its application scenarios. It is expected to continue weakening in October.
In terms of supply and demand in the LMFP market for the automotive industry: supply is stable, but the demand market has not yet expanded.

On the supply side: LMFP manufacturers are striving to increase capacity to meet market demand. The main suppliers are still Ronbay Technology, Defang Nano, and Hunan Hengchuang Nano, while second-tier enterprises are growing. Top-tier LFP enterprises such as Hunan Yuneng, Rongtong Hi-Tech, and Changzhou Liyuan have completed their technical reserves and industrial adjustments, ready to enter the LMFP market once it expands. Hunan Yuneng's large-scale industry is expected to start production, and both Hengchuang and Ronbay Technology have new capacities to be launched in 2024. With LMFP enterprises improving technology and expanding capacity, the production efficiency and output of LMFP will be greatly enhanced.

On the demand side: with the continuous development of the new energy industry, the demand for power batteries is strong. As one of the cathode active materials for power batteries, the market demand for LMFP should show a growth trend. However, due to its current product characteristics, it cannot yet play a major role in the NEV market: its cost is higher than LFP, and its performance cannot be used independently.

Industry Trends: The development of the LMFP market will be influenced by various factors. On one hand, the rapid growth of the NEV industry will continue to drive demand for LMFP, but currently, LMFP is only used in a few car models and in a blended form at about 20%. On the other hand, with technological advancements and cost reductions, the cost-performance ratio of LMFP is expected to improve further, potentially gaining a more significant position in the power battery market. Currently, LMFP is widely used in the small power battery market, which also serves as a testing ground for the large power battery market.

For more information on LMFP and future trends, refer to the SMM New Energy Phosphorus Chemical Products Report.

2024 Market Dynamics for LMFP (Partial):

[New Sodium LMFP Price Point] Starting June 26, 2024, SMM will publish the delivered transaction price of LMFP for market reference.

[LMFP: UK Integrals Power Announces Breakthrough] On October 14, 2024, UK startup Integrals Power announced a breakthrough in the development of LMFP cathode materials. Specifically, the manganese content in the material was increased to 80%, the specific capacity reached 150mAh/g, and the operating voltage reached 4.1V.

[LMFP: Hunan Yuneng's 160,000 mt LMFP Project Expected to Start Production in Q4 2024] At an investor event on October 10, 2024, Hunan Yuneng announced that the company is currently experiencing strong production and sales. With the new production lines coming online, the company will intensify its market promotion efforts. The second phase of the 160,000 mt LMFP project in Yunnan is expected to start production in Q4 2024. Additionally, the company stated that its cathode materials can be used in solid-state batteries and is actively engaging with solid-state battery manufacturers, focusing on the development and reserve of cathode materials that meet solid-state battery performance requirements.

[LMFP: Hunan Yuneng Plans LMFP Production at Yunnan Base] Hunan Yuneng is making smooth progress in the development of LMFP and is actively engaging with customers. The company has planned LMFP production at its Yunnan base. The production line design considers compatibility with LFP production, which will help improve capacity utilisation rate.

[LMFP: BTR's LMFP R&D Project Established] On September 25, 2024, BTR (Tianjin) Nano Materials Manufacturing Co., Ltd., a subsidiary of Liyuan Technology, announced that the "High Power LMFP Cathode Material Development" project, in collaboration with the Institute of Physics, Chinese Academy of Sciences, and Tianjin University of Technology, has successfully been established as an institute-city cooperation project.

[LFP: Ronbay Technology Reveals LMFP as the Next-Generation Upgrade] On September 23, 2024, Ronbay Technology (688005.SH) revealed on its investor interaction platform that LMFP is the next-generation upgrade of LFP, featuring higher energy density, lower cost, and superior low-temperature performance. The company has already achieved sales of multiple LMFP cathode materials in the power, two-wheeler, energy storage, and consumer sectors. The development of new low-cost products has also made phased progress and gained end-user recognition. The mixed-use system has been filed with MIIT for two domestic car models, and the pure-use system has received certification from overseas battery cell customers. By H1 2024, the company's LMFP shipments are expected to increase significantly, with a YoY growth of over 160%, maintaining a leading position in both shipments and market share within the industry.

[LMFP Battery: Lishen Showcases Two LMFP Batteries] At a tech exhibition on July 15, 2024, Lishen Battery showcased two new products: ternary LMFP battery and LMFP battery. Lishen's ternary LMFP battery approaches the energy density of traditional ternary batteries but offers higher safety and stronger cost competitiveness, supporting pure electric passenger cars with a range of over 900 km, fully replacing existing ternary battery products. Lishen's LMFP battery, compared to the current mainstream LFP battery, improves range by 15%, meeting the range requirements of models over 800 km and performing better in low-temperature conditions.

[LMFP: Wanrun's LMFP in Trial Production and Validation Stage] On July 18, 2024, Wanrun New Energy (688275.SH) stated on its investor interaction platform that although LMFP theoretically has higher energy density than LFP, the actual performance indicators of LMFP are still significantly lower than LFP. With continuous technological advancements, LMFP's performance is expected to improve, complementing and partially replacing LFP. Wanrun's LMFP products are currently in the trial production stage, with production lines capable of large-scale production, and are undergoing customer validation.

[LMFP: Hunan Yuneng Achieves Significant Breakthroughs in LMFP] On July 19, 2024, Hunan Yuneng (301358.SZ) stated on its investor interaction platform that the company has successfully launched multiple new LFP products. The CN-5 series is mainly used in the energy storage sector, showing significant advantages in cycle life, efficiency, and energy density, with some indicators surpassing previous products. The YN-9 series, characterized by high energy density, is specifically designed for power batteries and has received high recognition from customers. Additionally, the company has made significant progress in LMFP development, particularly in manganese dissolution, high-temperature cycling, and compaction density, while continuously optimizing other key performance metrics.

[LMFP: Gotion High-tech Showcases LMFP Battery] Recently, Gotion High-tech signed a 2GWh energy storage project order, marking its growing influence in the global new energy sector. At the exhibition, Gotion High-tech showcased its innovative 5MWh liquid-cooled large storage product Gotion Grid, LMFP battery, and 46 series cylindrical battery products.

[Baili Engineering Announces 100,000 mt LMFP EPC Contract Execution: Project Not Started] Hunan Baili Engineering Technology Co., Ltd. responded to a regulatory inquiry from the Shanghai Stock Exchange regarding its 2023 annual report and made an announcement. On January 9, 2024, the company signed an EPC contract with Shanxi Terawatt Energy Technology Co., Ltd. for the design, procurement, and construction of a 100,000 mt LMFP cathode material project, with a tentative contract amount of 838 million yuan. As of June 25, 2024, the project has not started, and the company has not received any project prepayments or made any procurement prepayments. The actual controller of Shanxi Terawatt is Sun Qi, who also controls Inner Mongolia Qianyung High-tech New Materials Co., Ltd.

[LMFP: 15,000 mt LMFP Project with 300 Million Investment Signed] Jingshi Company plans to sign an investment agreement with the People's Government of Qingchuan County, Guangyuan City, Sichuan Province, for a 15,000 mt LMFP production line project. The company plans to invest in the Qingchuan Economic Development Zone to build a 15,000 mt LMFP production line, with a total investment of 300 million yuan, including 100 million yuan in fixed assets.

[LMFP: Wanrun's LMFP Shares Production Line with Existing LFP Line] On June 11, 2024, Wanrun New Energy stated that the second-generation high specific capacity LMFP product being developed by the company uses more precise particle size distribution, thinner and more uniform in-situ three-dimensional carbon coating technology, and multi-ion phase doping technology, effectively enhancing ion diffusion and electronic conductivity. This product can share the existing LFP production line, but the conversion requires significant funds and time.

[10,000 mt Annual Production! Hengchuang Nano's LMFP Project in Trial Production] Hengchuang Nano's 10,000 mt annual LMFP project has started trial production, with the first batch of products officially rolling off the production line on May 29. The project started construction in 2023, and upon completion, Hengchuang's Yancheng base will have an annual LMFP capacity of 15,000 mt, with an expected annual output value of over 1 billion yuan and the creation of over 100 new jobs. Hengchuang Nano has completed multiple rounds of financing, with a total financing amount of nearly 500 million yuan. It is the only company globally with the core components of LMFP. To date, Hengchuang Nano's LMFP series products have achieved large-scale commercial applications in two-wheeled electric vehicles and consumer electronics. In 2023, Hengchuang's sales revenue was nearly 100 million yuan, with shipments exceeding 1,000 mt. In 2024, shipments are expected to grow strongly, achieving more than five times the growth compared to 2023.

[Sunwoda: Successfully Mass-Produced and Delivered HEV Products to Overseas Car Manufacturers] Sunwoda stated during an institutional survey that the company's HEV products, featuring high power, long life, and high safety, meet the high technical requirements of HEV batteries. The company has established cooperation with major domestic HEV car manufacturers and has successfully mass-produced and delivered HEV products to well-known overseas car manufacturers. Adhering to the "Focus + Differentiation" strategy, the company focuses on prismatic aluminum shell batteries and also lays out large cylindrical power batteries, covering both BEV, PHEV/EREV power and energy storage markets. The company continues to invest in new technologies, continuously developing advanced battery products such as solid-state batteries, lithium metal batteries, high specific energy silicon anode batteries, LMFP batteries, and sodium-ion batteries.

[LFP: Fulin Precision Machining (Jiangxi Shenghua) Has 140,000 mt Annual LFP Capacity at Jiangxi Base] On May 20, 2024, Fulin Precision Machining (300432.SZ) stated on its investor interaction platform that its subsidiary Jiangxi Shenghua has an annual LFP capacity of 140,000 mt. The company relies on its existing product and technology system to meet the diverse needs of customers and the market for high compaction LFP and LMFP.

[LFP: Easpring's LFP and LMFP Cathode Materials Suitable for Solid-State Batteries] On May 17, 2024, Easpring Technology stated on its investor interaction platform that the company's LFP and LMFP cathode materials are suitable for solid-state battery systems.

[Iron Phosphate Project Signed: Scale Unknown] On May 13, 2024, Jiumo Technology signed a project agreement for LFP cathode material precursor in Changsha, to be located in the national economic and technological development zone—Wangcheng Economic Development Zone. The project aims to develop a globally leading new type of LFP cathode material precursor, providing core key raw materials for the next generation of low-cost, high-performance LFP and LMFP for iron phosphate cathode material producers. Currently, Changsha already has iron phosphate enterprises such as Hunan Yacheng, with a capacity of 110,000 mt.

GEM's LMFP has entered the ton-level production line debugging stage and is undergoing certification with downstream customers.

[Ronbay's Overseas LMFP Progress: 20,000 mt LMFP in Phase II Project at Korean Base Accelerates Construction] Ronbay's JS base in Korea has a Phase I project with an annual capacity of 20,000 mt of ternary cathode materials, currently achieving monthly shipments of hundreds of tons. The Phase II capacity plan includes an annual capacity of 40,000 mt of ternary cathode materials and 20,000 mt of phosphate materials, with construction accelerating. The Phase I project is expected to ramp up capacity in Q3 and Q4 this year, with large-scale mass production by year-end or early next year. In Q1, the company delivered nearly 5,000 mt of products to overseas customers, accounting for about 20% of total shipments. In H2, with the ramp-up of the Korean base and increased sales to overseas customers from domestic bases, the proportion of sales to overseas customers is expected to increase significantly, driving annual sales and profit growth.【Great Power Energy's 100,000 mt/year LMFP Project Breaks Ground】The groundbreaking ceremony for Xinjiang Great Power New Material Technology Co., Ltd.'s 100,000 mt/year LMFP cathode active materials project, with a total investment of 4 billion yuan, took place in Huocheng County, Ili, Xinjiang. The first phase of the project is expected to start construction in April 2024, with two LMFP production lines to be completed and put into operation by year-end. The second phase is expected to be completed in 2025, with two additional LMFP production lines and two precursor production lines to be put into operation. Compared to LFP, LMFP increases energy density by about 25% while only increasing costs by about 5%, and is mainly used in NEV batteries and energy storage batteries.

【Great Power Energy Applies for Patent on LMFP Composite Material and Its Preparation Method: Controllable Morphology and Particle Size】On April 16, 2024, according to the announcement by the National Intellectual Property Administration, Guangzhou Great Power Energy Technology Co., Ltd. applied for a patent titled "A LMFP Composite Material and Its Preparation Method," with publication number CN117894960A and application date of January 2024. This invention provides a LMFP composite material and its preparation method, related to the field of lithium-ion battery technology. The preparation method includes: mixing manganese salt compound, iron salt compound, lithium salt compound, and phosphorus source compound, followed by hydro/solvothermal reaction to obtain a suspension; separating the suspension to obtain a precipitate, which is then washed and dried to obtain a submicron precursor; drying the submicron precursor and performing a primary sintering to obtain a primary sintered material; adding deionized water, carbon source, and conductive agent, mixing and drying to obtain pretreated precursor particles; and obtaining the final product after secondary sintering. The preparation process is simple, easy to operate, maintain, and control, with controllable product morphology and particle size, making it highly suitable for industrial-scale production. This synthesis method effectively overcomes the drawbacks of LMFP, such as low electronic conductivity, low ionic conductivity, and manganese dissolution, and is expected to promote the application of LMFP materials.

【STELATO Launches LMFP Battery】High capacity and high density, STELATO launches a 24Ah LMFP system prismatic aluminum shell lithium-ion battery. The main parameters of STELATO's 24Ah LMFP system prismatic aluminum shell lithium-ion battery are:
Model: IMP17/119/129(24)EA;
Rated capacity: 24,000mAh@0.5C;
Nominal voltage: 3.75V; Nominal energy: 90Wh;
AC internal resistance: ≤4mΩ.

【Dawn Nano: Company's Lithium Supplement Products Are Key Materials for Solid and Semi-Solid Batteries, Already Applied by Some Customers】Dawn Nano stated on the interactive platform that the company mainly engages in the R&D, production, and sales of core materials for lithium-ion batteries and does not produce batteries. The company's existing products, including nano LFP, LMFP, and lithium supplement agents, are high-performance auxiliary materials suitable for solid-state battery systems. The company's lithium supplement products are key materials for solid and semi-solid batteries and have already been applied by some customers. According to estimates, the addition amount and proportion of lithium supplement agents in solid and semi-solid batteries are greater than in current liquid battery systems. Additionally, the company has technical reserves and patent layouts in solid-state battery electrolytes and other additives. Relevant matters will be disclosed in a timely manner if they meet disclosure standards.

【Dawn Nano: LMFP Products Have Been First Applied in Vehicles, Shipments Gradually Increasing】Dawn Nano stated on the interactive platform that LMFP, as a new generation of cathode active material, has a broad market space. In 2023, the first car model equipped with "ternary lithium-ion + LMFP battery," LUXEED S7, was launched. In 2024, new models such as EXEED Yaoguang, STELATO S9, and LUXEED R7 were successively added, further accelerating the commercialization of LMFP. The company's LMFP products have been first applied in vehicles, with industry-leading product performance and capacity scale, capable of large-scale supply applications, and shipments gradually increasing according to customer demand.