China LFP output in October and forecast for November

In October, China's LFP production was 126,990 mt, down 0.4% MoM and up 3% YoY. Production for Jan-Oct soared 39.5% YoY. The cost of LFP fell amid the continued decline in prices of the main raw material lithium carbonate and the slight decline in iron phosphate price. On the supply side, due to the decline in lithium carbonate prices in October, LFP enterprises reduced production and werewilling to ship goods at lower prices to maintain market share. On the demand side, EV market continued to be flat and the energy storage market was lower than expected. Battery cell enterprises, plagued by high inventories, reduced production, suppressing demand for LFP. Due to weak supply and demand in downstream and end-use market in the fourth quarter and strong bearish sentiment, LFP enterprises are cautious in scheduling production. Domestic LFP production is expected to be 114,500 mt in November 2023, down 10% MoM and up 4.3% YoY.