Xin Lang Cai Jing·2025-12-26 05:00Core Viewpoint - The demand for lithium iron phosphate (LFP) materials is surging due to rapid growth in the downstream electric vehicle and energy storage markets, leading to full order books for leading companies until 2026, despite recent announcements of production cuts for maintenance by several major players [1][11]. Group 1: Production and Maintenance - Several leading LFP companies, including 德方纳米, 湖南裕能, and 万润新能, have announced production cuts for maintenance, with maintenance scheduled to start on January 1, 2026, for approximately one month [1][3][5]. - 湖南裕能 plans to reduce its phosphate positive material output by 15,000 to 35,000 tons during this maintenance period [3]. - 万润新能 expects a reduction of 5,000 to 20,000 tons in LFP production due to maintenance starting December 28, 2025 [5]. Group 2: Price Increases - A price increase trend has emerged among LFP manufacturers, with 湖南裕能 raising processing fees by 3,000 yuan per ton (excluding tax) [7]. - The price of battery-grade lithium carbonate has surged over 50% from its mid-year low, now ranging from 97,200 to 100,000 yuan per ton [7]. - The overall cost of upstream raw materials, including lithium salts and various auxiliary materials, has risen significantly, contributing to the price increase of LFP materials [7][19]. Group 3: Market Dynamics - In the first 11 months of 2025, LFP battery sales in China reached 760.5 GWh, capturing a market share of 72.8%, with a year-on-year growth rate of 66.9%, significantly outpacing the 18.6% growth of ternary lithium batteries [9][20]. - The LFP industry is facing challenges such as overcapacity and homogeneous competition, leading to significant pressure on profit margins [10][21]. - The profitability of LFP companies is low, with only 16.7% of companies in the sector reporting profits, which is considerably lower than other lithium battery materials [21]. Group 4: Financial Performance - The average asset-liability ratio of six listed LFP companies is as high as 67.81%, indicating financial strain within the industry [11][22]. - From the end of 2022 to August 2025, LFP material prices plummeted by 80.2%, from 173,000 yuan per ton to 34,000 yuan per ton, resulting in over 36 months of continuous losses for the industry [11][22]. - Leading companies, including 德方纳米 and 万润新能, have reported cumulative losses exceeding 10.9 billion yuan from 2023 to the third quarter of 2025 [11][22].