[SMM analysis] approaching year-end negotiations for orders in 2025, LFP enterprises show strong intention to raise prices 

SMM, Nov 29: Recently, the price fluctuations of LFP have been mainly influenced by the lithium carbonate market. As the price of lithium carbonate fluctuates, the market trend of LFP also shows corresponding changes. Entering November, LFP companies have shown a clear intention to raise prices for next year's negotiations, which is expected to be finalized in December.

SMM believes that most LFP companies will face a predicament of losses in 2024, forcing them to consider price increases in their future business strategies to alleviate pressure. Companies are particularly focused on the market situation in 2025, hoping to escape the loss situation through price adjustments. However, the realization of price increase expectations is constrained by various factors, including the bargaining between upstream and downstream companies and competition among peers.

On the production side, the operating rate of LFP in November was relatively high. In December, companies have formulated corresponding shipment growth plans under the expected decline in production to reduce inventory. The implementation of this strategy aims to effectively boost sales during the year-end market demand peak.

Despite the complex market environment, LFP companies still need to pay attention to the dynamics of the lithium carbonate market and changes in downstream NEV and energy storage demand to respond flexibly to future price fluctuations. Additionally, the cooperation and competition relationships between companies will also be crucial in determining the subsequent market direction.

In summary, after experiencing losses throughout the year, the LFP market shows a stronger intention to raise prices at the year-end. The entire industry is closely monitoring the future market trends and various factors that may affect prices. As the year-end approaches, the decisions and market responses of LFP cathode active material manufacturers and downstream battery cell manufacturers will significantly impact the development of the LFP industry chain next year.