Lithium iron phosphate high-pressure tight products become a must-fight place

"Mainstream lithium iron phosphate manufacturers are currently generally improving capacity utilization, especially high-end products are in high demand. As far as I know, the fourth-generation lithium iron phosphate production line of a leading enterprise in Central China is dry and 'smoking'." A lithium material industry insider told the Securities Times reporter.

In fact, the recent lithium iron phosphate industry frequently appeared large orders.

In the past two months, Longpan Technology has successively obtained long-term orders of Blue Oval and Ningde era, and has been added by LGES. Specifically, in January 2025, the Sun Company's lithium source (Asia Pacific) was "locked single" by Blue Oval, and will sell lithium iron phosphate cathode materials to the latter, with an initial supply period of 5 years, that is, 2026 to 2030; In the same month, the company reached a framework agreement with Ningde Times to supply lithium iron phosphate cathode materials to the latter in 2025, with an estimated sales ceiling of 7 billion yuan; In December 2024, the company signed a supplementary agreement with LGES, agreeing that during the period from 2024 to 2028, the total number of lithium iron phosphate products supplied to the latter was increased from 160,000 tons to 260,000 tons, according to the current market price, the overall market value of the aforementioned order was close to 10 billion yuan.

In terms of other manufacturers, Fulin Seiko won the long order of Ningde Times in August 2024, and will supply at least 140,000 tons/year to Ningde Times from 2025 to 2027. In order to ensure product supply, Ningde Times will pay a certain amount of advance payment to Fulin Seiko to support the construction of the latter's annual output of 75,000 tons of lithium iron phosphate production base in Jiangxi.

In addition, Hunan Yuleng, Wanrun New energy and other lithium iron phosphate manufacturers have also said on different occasions that production and sales have been booming since the fourth quarter, and German Nano revealed that a number of production bases have not stopped work during the Spring Festival, maintaining orderly operation to meet customer orders.

It is worth mentioning that the amplification of this round of orders is also accompanied by the rise in prices, making the industry more warm.

Hunan Yuleng made it clear in mid-January that the company has been actively negotiating with customers, and some customers have determined price increases. According to Shanghai Nonferrous Network news, a large factory suppliers S5 (energy storage), 255 (power), 265 (power) three different lithium iron phosphate materials to implement price increases, the overall price increase of 500 yuan/ton to 1500 yuan/ton. Previously, Tianyuan shares also confirmed that the price of lithium iron phosphate has risen to a certain extent.

"Market demand volume and product technology iteration are the two main reasons for the recent price increase of lithium iron phosphate." Longzhong information lithium iron phosphate analyst Zhai Linlin told the Securities Times reporter, lithium iron phosphate battery with its cost-effective advantages has become the absolute mainstream of domestic power battery installed, the expansion of the market will further promote manufacturers to increase research and development, continue to launch high-performance new products, thus forming a positive cycle.

According to the data of the China Automotive power Battery Industry Innovation Alliance, in 2024, China's lithium iron phosphate battery cumulative loading capacity of 409GWh, an increase of 56.7%, accounting for the proportion of total loading capacity increased to 74.6%. Among them, the loading volume in December 2024 reached 61GWh, an increase of 95.1% year-on-year, accounting for 80.9% of the total loading volume, breaking 80% for the first time.

Under the strong market demand, the mentality of lithium iron phosphate manufacturers is also changing. Zhang Jinhui, senior researcher of Xinueng Information, said that most lithium iron phosphate manufacturers in the past two years are in a state of loss, and are now eager to turn around, the sensitivity to price has become high, and the situation of "losing money Shouting" has been greatly reduced, and the overall price sentiment is stronger.