Hunan Yuneng New Energy Battery Material (SZ:301358) 智通财经网·2025-08-29 07:48Core Viewpoint - The lithium iron phosphate (LFP) industry is facing low capacity utilization and continuous losses among most companies due to significant capacity expansion and volatile lithium resource prices. The China Chemical and Physical Power Industry Association has released a draft proposal to maintain the healthy and orderly development of the LFP materials industry, which aims to stabilize prices and promote profitability [1]. Group 1: Industry Challenges - The LFP demand has been rising due to the booming new energy vehicle and energy storage industries, with China's LFP material capacity accounting for over 95% of global capacity by mid-2025 [1]. - The industry is experiencing low capacity utilization rates, with many companies reporting ongoing losses due to the drastic expansion of capacity and fluctuations in lithium prices [1]. Group 2: Association's Proposal - The proposal includes four key recommendations: 1. Resist malicious price competition and maintain market order by establishing a "LFP product cost price index" to provide objective pricing references [2]. 2. Build a healthy supply chain ecosystem to collaboratively address raw material price volatility through long-term agreements and futures market references [2]. 3. Strengthen capacity self-discipline management and improve industry access mechanisms by controlling capacity utilization rates and clearing inefficient capacity [2]. 4. Shift competition focus from price to technology development, product performance, manufacturing processes, and service systems [2]. Group 3: Market Performance - By mid-2025, LFP battery installation in China accounted for over 81% of total installations, with a year-on-year increase of 67% [3]. - The cumulative installation volume of LFP batteries reached 244.0 GWh, representing a 73.0% year-on-year growth, while LFP cathode shipments totaled 1.632 million tons, up 66.6% year-on-year [3]. - Hunan Youneng led the market with a 30% share and a production of 400,000 tons, while other companies like Wanrun New Energy and Defang Nano held market shares between 5% and 10% [3].