As the year-end approaches, major LFP cathode suppliers are expected to initiate a new round of negotiations and bidding for 2025. However, the future of the industry remains uncertain. Amidst the continuous expansion of capacity, market competition is becoming increasingly fierce, and LFP companies are facing unprecedented development challenges.
SMM believes that prolonged losses will not only weaken companies' investment in new technology research, thereby restricting the industry's innovative development, but will also cause a chain reaction in the upstream iron phosphate industry. Due to the limited processing fee space for LFP companies, the price space for upstream iron phosphate is also compressed, leading to a similar loss predicament for iron phosphate companies, which poses a threat to the healthy development of the entire industry chain.
More seriously, intense market competition may accelerate the elimination of outdated capacity, but at the same time, they also put many high-quality companies at risk of bankruptcy.
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