EVN Vietnam Accelerates BESS Deployment

Recently, the Spanish news agency EFE reported that BYD has announced an investment of 500 million Brazilian reais (approximately 100 million US dollars) to establish an energy storage battery production base in Brazil. This marks the largest dedicated investment in energy storage batteries in Brazil to date and signals an acceleration in BYD's energy transition strategy in Latin America. In its statement, BYD said that the investment will be implemented in a phased, incremental approach, steadily advancing the construction of energy storage battery production capacity. Addressing the specific characteristics of the Brazilian market, BYD noted that the region faces significant imbalances in electricity production, coupled with the essential energy demands of core high-consumption industries such as mining, agriculture, and livestock. These factors present extensive application scenarios for energy storage equipment, which can effectively address local power supply and demand gaps.

China's exports of lithium iron phosphate (LFP) in May 2026 reached 7,625.4 tonnes, up 29.3% month-on-month from April and surging 710.0% year-on-year from May 2025, setting a new high for a single month this year.

The settlement mechanism for LFP is evolving, but the “lithium + phosphoric acid” dual linkage covers only a portion of costs and carries structural flaws such as process mismatch and lagging price references. SMM believes the industry should move directly to the ultimate “lithium carbonate + iron phosphate” solution. The SMM iron phosphate price is a settlement benchmark recognized by both upstream and downstream players.