Hua Xia Shi Bao·2025-06-07 00:20Core Viewpoint - The lithium battery cathode sector is undergoing significant changes due to technological advancements, impacting the industry landscape and company strategies [3][4]. Company Developments - Fulin Precision announced a 500 million yuan prepayment from CATL to support its expansion projects, indicating a deepening strategic partnership [3][5]. - Jiangxi Shenghua, a subsidiary of Fulin Precision, is set to produce 75,000 tons of lithium iron phosphate annually by 2025, with CATL committing to purchase at least 140,000 tons annually from 2025 to 2027 [4][5]. - Longpan Technology has secured a contract to supply 152,000 tons of lithium iron phosphate to Eve Energy, with a total contract value exceeding 5 billion yuan [5][6]. - Wanrun New Energy has also signed a significant supply agreement with CATL, committing to deliver approximately 1.32 million tons of lithium iron phosphate from 2025 to 2030, potentially generating around 80 billion yuan in revenue [5][6]. Industry Trends - The price of lithium iron phosphate is closely linked to the prices of raw materials like lithium carbonate, which have been declining, leading to low margins and losses for many companies [3][6]. - High-density lithium iron phosphate products (≥2.6 g/cm³) are in short supply, with only a few manufacturers capable of mass production, indicating a potential supply-demand imbalance [4][7]. - The overall market for lithium iron phosphate is expected to remain weak in the short term, but high-density products may see stable prices due to tight supply [7][8]. Performance Insights - Fulin Precision reported a 71.99% increase in revenue from lithium battery cathode materials in 2024, driven by high-density products achieving full production and sales [6][7]. - Other leading companies in the sector, such as Hunan Youneng and Longpan Technology, have faced declining revenues and profits, highlighting the competitive pressures in the industry [6][7].