Core Viewpoint - The meeting held on August 22 in Shenzhen focused on addressing the issue of excess capacity in the lithium iron phosphate (LFP) industry, with industry representatives discussing strategies for capacity elimination and low-carbon transformation across the supply chain [1][7]. Group 1: Industry Context - The LFP materials sub-association was established in May this year to promote standardization, eliminate outdated capacity, and strengthen international cooperation, aiming to help China lead the global LFP industry [7]. - The meeting included representatives from 10 LFP industry companies, highlighting the collaborative effort to tackle industry challenges [4]. Group 2: Capacity and Demand Dynamics - The LFP industry is currently experiencing a structural supply-demand imbalance, characterized by overall excess capacity but a shortage of high-quality production [11]. - By the first half of 2025, China's LFP production is expected to reach 1.632 million tons, a year-on-year increase of 66.6%, with total available capacity rising to 5.32 million tons [11]. - Leading companies maintain over 70% operational rates due to their technological and financial advantages, while smaller firms struggle with underutilization due to lower product quality [11]. Group 3: Capacity Elimination Trends - The current "anti-involution" trend may lead to the elimination of certain LFP capacities, including those unable to keep pace with product upgrades, those affected by bankruptcies or cash flow issues, and those with poorly designed production lines [12].
独家|“产能出清”网传文件获证实!磷酸铁锂行业闭门会在深圳召开