[SMM Analysis] Weekly Price Analysis of LFP

SMM, December 27: This week, LFP prices showed relatively small fluctuations, with a slight increase. Lithium carbonate exhibited signs of stabilizing after a decline this week, and long-term contracts for next year are expected to be signed primarily with no discount or very low discounts. Processing fees saw little change this week, remaining generally aligned with long-term contract prices and relatively stable. However, due to the rising prices of iron phosphate raw materials, material manufacturers have shown a strong demand for processing fee increases in the near term and for next year, with a clear sentiment to stand firm on quotes. This week, LFP tender results included cases of failed bids, as upstream and downstream parties have yet to reach a consensus and are currently in a negotiation phase. Regarding the operating rate, leading and second-tier LFP enterprises maintained high operating rates this week, and China's LFP production in December is not expected to see a significant decline. Overall, the LFP market continued to operate on a high-growth trajectory this week, with no signs of order reductions observed. SMM New Energy Research Team Cong Wang 021-51666838 Rui Ma 021-51595780 Ying Xu 021-51666707 Disheng Feng 021-51666714 Yujun Liu 021-20707895 Yanlin Lü 021-20707875