高工锂电·2025-06-19 11:02Core Viewpoint - The article discusses the ongoing price war in the Chinese electric vehicle (EV) market, highlighting the shift from ternary lithium batteries to lithium iron phosphate (LFP) batteries as a cost-effective solution, reshaping the industry landscape and supply chain dynamics [2][5][19]. Group 1: Price War Dynamics - In May 2025, a new round of price cuts began in the Chinese EV market, initiated by BYD's significant discounts on its models, prompting other brands to follow suit [2][6]. - The China Automobile Industry Association and the Ministry of Industry and Information Technology have called for a halt to "involutionary" price wars, indicating concerns over the sustainability of such practices [2][6]. Group 2: Shift to Lithium Iron Phosphate - The article notes a significant transition in battery technology, with many manufacturers moving from ternary lithium batteries to LFP batteries due to their cost advantages and improved performance metrics [5][6]. - The price of lithium carbonate has plummeted by 90% from its peak in November 2022, leading to a substantial reduction in the cost of LFP batteries [5][19]. - By early 2025, LFP batteries accounted for over 80% of passenger vehicle installations, marking a significant shift in market dynamics [6][9]. Group 3: Technological Advancements - LFP battery technology has seen improvements in energy density and low-temperature performance, making it increasingly competitive with ternary batteries [7][8]. - The density of LFP materials has increased from 2.2g/cm³ to 2.6g/cm³, enhancing their overall performance [7][8]. - The article emphasizes that LFP batteries are not just low-cost alternatives but are evolving to meet higher performance standards [8][9]. Group 4: Market Share Reconfiguration - The market share of LFP batteries has dramatically increased, with their installation rate in the Chinese passenger car market rising from less than 30% in 2020 to 80% in 2025 [9][10]. - Traditional perceptions of LFP batteries being limited to low-end vehicles are being challenged as they penetrate higher-end segments [10][12]. Group 5: Profitability Challenges - Despite the growth in LFP battery adoption, many companies in the supply chain are facing profitability issues, with reports of declining margins and net losses among LFP material suppliers [19][22]. - The article highlights a potential three-year timeline for the industry to fully clear out excess capacity and stabilize profitability [22][24]. Group 6: Future Outlook - The article concludes with a call for the industry to explore new value propositions beyond cost, as the current focus on cost reduction may undermine long-term sustainability [27][28]. - Upcoming industry events, such as the 18th High-Performance Lithium Battery Industry Summit, aim to address these challenges and explore new opportunities in the lithium battery sector [3][30].