SMM Data: China’s LFP Output In August And Forecast For September

SHANGHAI, Sep 15 (SMM) – In August, China's LFP production reached 130,790 mt, with a decrease of 5.8% MoM and an increase of 44.5% YoY. The cumulative year-on-year growth stood at 53.2%. On the cost side, the price of the main raw material, lithium carbonate, continued to decline, while the price of iron phosphate slightly increased at the end of the month, resulting in a decrease in production costs. On the supply side, due to the decline in lithium carbonate prices, battery manufacturers extended their delivery times. LFP enterprises reduced production and prioritized inventory digestion, leading to a decrease in overall supply. On the demand side, battery manufacturers and the entire downstream sector showed a cautious attitude, refraining from buying in the face of price declines and waiting for lithium carbonate prices to stabilize before making purchases. In September, the downstream and terminal supply and demand are expected to remain relatively flat, with leading companies possibly accepting orders at lower prices to gain market share. It is estimated that in September 2023, LFP production will reach 138,940 mt, with an increase of 6.2% MoM and an increase of 24.0% YoY.