Weekly Summary of the LFP Market [SMM Analysis]

Published: Feb 27, 2025 19:26

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[SMM Analysis: Weekly Overview of the LFP Market] SMM, February 27 – This week, LFP market prices continued their downward trend, primarily due to the decline in lithium carbonate prices. Lithium carbonate prices fell by approximately 800 yuan/mt this week. LFP processing fees remained generally stable; however, recent price increases in processing fees for certain material manufacturers, mainly targeting mid- to high-density products, have been implemented. It is expected that SMM's LFP price processing fee component will be adjusted accordingly. Regarding lithium carbonate discounts, negotiations have not yet been fully concluded. Downstream battery cell manufacturers are still pushing for lower discounts, and the customer-supplied lithium carbonate volumes for some material manufacturers have decreased, increasing the risk of potential losses for these manufacturers. Negotiations between the parties are ongoing. Supply side, the overall operating rates of LFP material manufacturers remained relatively stable this week. However, some medium- and small-sized LFP manufacturers have implemented production cuts or halted production, while leading material manufacturers maintained stable production. Demand side, some downstream battery cell manufacturers slightly reduced their February procurement volumes, leading to minor adjustments in certain supply chain structures. Overall inventory for February increased slightly.

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SMM, February 27 – This week, the LFP market price continued its downward trend, primarily due to the decline in lithium carbonate prices. Lithium carbonate prices fell by approximately 800 yuan/mt this week. LFP processing fees remained stable overall, but recently, some material manufacturers implemented price increases for processing fees, mainly targeting mid- and high-compaction products. It is expected that the processing fee component in SMM LFP prices will be adjusted soon. Regarding lithium carbonate discounts, negotiations have not been fully concluded yet. However, downstream battery cell manufacturers are still inclined to push for lower discounts, and the lithium carbonate supply from customers to some material manufacturers has decreased, increasing the potential risk of losses for these manufacturers. Negotiations between the two sides are ongoing. On the supply side, the overall operating rates of LFP material manufacturers remained relatively stable this week, although some medium- and small-sized LFP manufacturers have undertaken production cuts or halted production. Leading material manufacturers maintained stable production. On the demand side, some downstream battery cell manufacturers slightly reduced their February procurement volumes, leading to minor adjustments in the supply chain structure. Overall inventory for February is expected to increase.

SMM New Energy Research Team

Cong Wang 021-51666838

Xiaodan Yu 021-20707870

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yujun Liu 021-20707895

Yanlin Lü 021-20707875

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Xiaoxuan Ren 021-20707866

Jie Wang 021-51595902

Yang Xu 021-51666760

Boling Chen 021-51666836

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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