Core Insights - The lithium battery cathode materials industry is experiencing price stagnation, with lithium iron phosphate (LFP) and ternary materials prices remaining low since early 2024, stabilizing after September, and expected to rise due to cobalt price increases following the suspension of cobalt exports from the Democratic Republic of Congo in February 2025 [1][8]. Industry Policy - Domestic policies are focused on optimizing capacity layout and promoting energy conservation and carbon reduction, leading to the elimination of inefficient production capacities. International regulations are tightening, pushing companies to enhance supply chain resilience through technological innovation and resource integration [2][3][5]. - The State Council's 2024-2025 Energy Conservation and Carbon Reduction Action Plan emphasizes the need for advanced energy efficiency in new lithium battery projects, aiming to curb the disorderly expansion of high-energy-consuming capacities [3][4]. Key Industry Indicators - In 2024, the total output of lithium battery cathode materials in China is projected to reach 3.292 million tons, a year-on-year increase of 32.9%. LFP materials are expected to grow by 48.2%, capturing a market share of 73.7%, while ternary materials are forecasted to decline by 3.2%, reducing their market share to 19.5% [7][8]. - The total industry output value for lithium-ion battery cathode materials in China is estimated at 209.62 billion yuan in 2024, reflecting a significant year-on-year decline of 34.9% [9]. Industry Chain Situation - The upstream resources for lithium battery cathode materials, including nickel, cobalt, and lithium, are heavily reliant on imports. Future strategies include diversifying overseas mineral investments and enhancing domestic resource exploration [10][11]. - The downstream demand is primarily driven by power batteries, with a notable surge in the energy storage sector. In 2024, the installed capacity of power batteries in China is expected to reach 548.4 GWh, a year-on-year increase of 41.5% [12][13].