Core Viewpoint - The demand for high-pressure lithium iron phosphate (LFP) is increasing due to the performance improvements in energy storage and power batteries, while the supply is constrained by the complexity of production processes and the limited number of companies capable of mass production [1][2][4]. Group 1: Market Demand and Supply Dynamics - High-pressure LFP is in high demand due to the scaling of large-capacity, high-energy, and fast-charging batteries [1]. - The production of high-pressure LFP requires strict raw material purity and particle size distribution, with only a few companies mastering mass production technology [1][2]. - The pricing mechanism for LFP has shifted to a model based on "raw material market price + processing fee," with high-pressure LFP commanding an additional processing fee of 2000-5000 yuan per ton compared to standard products [1]. Group 2: Competitive Landscape - The production capacity for fourth-generation high-pressure LFP (≥2.6g/cm³) is concentrated among leading companies such as Fulin Precision, Hunan Youneng, Longpan Technology, and Defang Nano, which limits the survival space for smaller firms [2]. - Despite the capacity of leading firms, actual production and future capacity ramp-up will take time, leading to a significant demand gap in the short term [2][4]. - The market for fourth-generation LFP is expected to see concentrated supply once leading companies complete their capacity expansions, potentially altering the competitive landscape [2]. Group 3: Industry Trends and Innovations - The performance of energy storage batteries is improving, with average capacity utilization rates for leading battery companies reaching 70%-80%, and some even exceeding 80% [5][6]. - The domestic energy storage market saw a cumulative installed capacity of 23.03 GW/56.12 GWh in the first half of 2025, a year-on-year increase of 68% [6]. - The mainstream density for LFP materials is currently between 2.5-2.55 g/cm³, with ongoing technological iterations pushing for larger capacities and longer cycle lives [6]. Group 4: Strategic Moves by Companies - Leading LFP companies are accelerating their fourth-generation product layouts, with Fulin Precision's subsidiary signing a prepayment agreement with CATL to enhance high-pressure LFP supply [10][11]. - Hunan Youneng has introduced its fourth-generation LFP products, achieving batch supply after important customer certifications [11]. - Smaller firms are also making moves, with companies like Pengbo New Materials and Wanhua Chemical planning to invest in high-pressure LFP production projects [13].

Report Overview - Report Date: August 29, 2025 [2] - Industry: Non-ferrous Metals (Lithium Carbonate Futures) - Research Team: Non-ferrous Metals Research Team of Jianxin Futures - Researchers: Zhang Ping, Yu Feifei, Peng Jinglin [3][4] 1. Investment Rating - No investment rating information is provided in the report. 2. Core Viewpoints - The lithium carbonate futures market continued to revolve around upstream mining issues. Although there were uncertainties regarding ore type changes before the end of September, there was support at lower levels. With the approach of the traditional peak season of "Golden September and Silver October", downstream demand had certain rigid support. The decline in futures prices narrowed in the afternoon, and the spot price followed the decline. It was expected that the downward space of lithium carbonate futures was limited under the support of spot prices, and attention should be paid to the support level of 77,000 [9]. - The weekly production of lithium carbonate decreased for two consecutive weeks, and the supply-side pressure showed a slowdown trend. The weekly inventory decreased for three consecutive weeks, and it was judged that the inventory inflection point of lithium carbonate was approaching [9]. 3. Summary by Directory 3.1 Market Review and Operation Suggestions - **Futures Market**: The lithium carbonate futures declined. The lowest price of the main contract in the morning session was 75,740. The decline narrowed in the afternoon. It was expected that the downward space was limited under the support of spot prices, and attention should be paid to the 77,000 support level [9]. - **Spot Market**: The spot price followed the decline, with the price of electric carbon dropping by 1,600 to 80,000. The market transactions were active, and the point-price and trading activities increased significantly [9]. - **Supply and Demand**: The weekly production of lithium carbonate decreased by 108 to 19,030 tons, with the increase in lithium carbonate production from pyroxene slowing down, and the production from mica and salt lakes continuing to decline. The weekly inventory decreased by 407 to 141,136 tons [9]. 3.2 Industry News - **Fulin Seiko**: In the first half of 2025, the company achieved an operating income of 5.813 billion yuan, a year-on-year increase of 61.7%; the net profit attributable to the parent company was 174 million yuan, a year-on-year increase of 32.41%. The company accelerated its layout in the super-fast charging market, and the high-voltage and high-density lithium iron phosphate 4C ultra-fast charging products entered the high-end passenger car market. With the continuous growth of market and customer demand for high-compaction lithium iron phosphate, the overall production capacity, output, and loading volume of the company's lithium iron phosphate cathode materials would increase significantly [12]. - **Porsche**: Porsche AG announced the cancellation of the production plan of its high-performance battery subsidiary Cellforce. Due to the slowdown in electric vehicle demand and changes in the market environment in China and the United States, it would focus on battery R & D in the future [12].

Core Viewpoint - The article discusses the upcoming production launch of a high-performance lithium iron phosphate (LFP) cathode material project by Pengbo New Materials, which is expected to enhance the lithium battery industry chain in the Yangquan region and contribute to the growth of the sodium battery market [2][3]. Group 1: Project Overview - The Pengbo New Materials project in Yangquan is set to produce 100,000 tons of high-performance LFP cathode materials annually, with an investment of 1.85 billion yuan and an expected annual output value of 3 billion yuan [3]. - The project commenced construction in April 2023, with plans for trial production in mid-October 2023 and stable mass production thereafter [3]. - The company has a total planned capacity of 200,000 tons, with the first phase focusing on high-pressure LFP production using oxalic iron as a raw material [2][3]. Group 2: Production Capacity and Technology - Pengbo New Materials has established production bases in Changsha, Yangquan, and Bijie, with a combined long-term capacity exceeding 350,000 tons per year for LFP production [4]. - The company employs the oxalic iron method for LFP production, which allows for a single sintering process, reducing production time to 12-15 hours compared to the traditional phosphate iron method that requires 20-25 hours [5][6]. - The oxalic iron method is noted for its environmental advantages, producing only CO₂ and H₂O, while the traditional method generates harmful emissions [5]. Group 3: Market Position and Competitive Landscape - The competitive landscape for LFP is shifting from low-cost production to quality and value, with companies that can produce high-density LFP gaining a significant market advantage [6]. - The oxalic iron method has a higher technical barrier, with only a few companies, including Pengbo New Materials, mastering this technology, which allows them to enjoy product premiums and market benefits [6]. - As Pengbo New Materials ramps up its production capacity, it is expected to solidify its position in the competitive landscape of the lithium battery industry [6].

Core Viewpoint - The article highlights the significant growth and competitive landscape of the lithium iron phosphate (LFP) battery industry in China, emphasizing the increasing market share of LFP batteries over ternary batteries due to their cost-effectiveness, safety, and evolving performance characteristics [1][3][7]. Group 1: Industry Overview - In Q1 2025, China's LFP cathode shipment reached 746,000 tons, marking an 88.9% year-on-year increase, driven primarily by demand in the power and energy storage sectors [1]. - The competitive landscape of the LFP cathode industry is characterized by a "one strong, many strong" structure, with Hunan Youneng leading the market with a share of 29.8%, followed by Wanrun New Energy, Defang Nano, Youshan Technology, and Guoxuan High-Tech, with a combined market share of 61.1% [1][3]. Group 2: Market Dynamics - The installation ratio of LFP batteries in China's power battery market reached 80.8% in Q1 2025, a 17 percentage point increase year-on-year, while the share of ternary batteries dropped to 19.2%, a decrease of 17 percentage points [3]. - The energy storage sector predominantly utilizes LFP batteries, with over 94% of installations being LFP, indicating a strong future demand for LFP technology [3][7]. Group 3: Technological Advancements - The LFP cathode has evolved through four generations, with the latest generation achieving a powder density of approximately 2.60 g/cm³ and a sheet density of about 2.75 g/cm³, enhancing energy density and performance [4][6]. - Companies are focusing on high-density LFP products, with several firms like Hunan Youneng and Wanrun New Energy making significant advancements in production techniques and partnerships to enhance product offerings [6][7]. Group 4: Future Projections - The LFP cathode shipment in China is projected to reach 3.3 million tons in 2025, representing a 36.3% year-on-year growth, with expectations to reach 7.1 million tons by 2030, indicating a compound annual growth rate of 19.6% over the next six years [6][7].

磷酸铁锂材料高景气！ 4月14日， 丰元股份发布公告称，全资子公司山东丰元锂能近日与惠州比亚迪电池有限公司签订了 《磷酸铁锂合作框架协议》。 双方同意就2025-2028年度磷酸铁锂正极材料产品的采购、共同开发等事宜构建稳定、互信、共赢的合作伙伴关系，通过深度合作实现资源 共享、优势互补，共同推动双方在新能源材料领域的快速发展。 根据协议，在 未来三年内 （即2025年4月1日至2028年3月31日）， 由 丰元锂能向比亚迪供应磷酸铁锂正极材料产品， 比亚迪则在同等商 务条件下优先使用前者产品并且给予一定的采购份额等。 丰元股份表示，如果合作顺利推进，将进一步巩固并提高公司的行业地位、综合竞争力和可持续发展能力；有利于公司后续产能持续放量，销 售订单逐步扩大，对公司本年度及未来锂电池正极材料业务经营业绩产生积极影响。 起点锂电了解到， 丰元股份于 2021年6月成功通过比亚迪的供应商资质认证并正式批量供货，截至目前双方已经合作近4年。合作期间， 比 亚迪逐渐发展为 丰元股份的主要客户之一。 产能端，据 丰元股份3月12日公开披露， 目前已建成磷酸铁锂产能共计22.5万吨，在建磷酸铁锂产能共计7.5万吨。 行业 ...

Core Viewpoint - The lithium iron phosphate (LFP) material industry is undergoing a reshuffle, with high-pressure compact LFP leading the sector [1] Price Changes and Demand Forecast - A major manufacturer has implemented price increases for three types of LFP materials, with overall price hikes expected to be between 500 to 1500 yuan per ton by 2025, with the highest increase for the high-pressure compact 265 product [2] - According to Dongwu Securities, CATL's "Shenxing" battery's share in the company's LFP installations is expected to rise from approximately 15% in 2023 to over 70% by 2025, translating to a demand for high-end LFP of about 380,000 tons, with total demand for high-end LFP cathodes projected at 400,000 to 500,000 tons by 2025 [2] Company Performance and Profitability - Fulin Shenghua is one of the only two companies expected to be profitable in 2024, recovering from a significant loss of 1.05 billion yuan in 2023. The company reported a profit of over 1,000 yuan per ton for its LFP products in Q3 2024, marking a turnaround [4] - The company's ability to turn a profit is attributed to its pricing strategy, which has been the highest in the market since mid-2023, significantly ahead of competitors [4] Market Position and Production Capacity - Fulin Shenghua's shipment volume has rapidly increased, moving from barely making the top ten in 2023 to seventh place in 2024, with expectations to rise to second place by March 2024 [7] - Despite production cuts in the industry due to the Spring Festival, Fulin Shenghua has managed to increase production and is seeking outsourcing partners to fulfill customer orders due to high demand [7] Strategic Partnerships - Fulin Precision, a subsidiary of Fulin Shenghua, signed a long-term supply agreement with CATL in August 2024, committing to supply at least 140,000 tons of LFP annually from 2025 to 2027 [9] Cost Reduction and Production Efficiency - The company has adopted an oxalic acid process for LFP production, which provides a competitive edge in high-pressure compact performance. The cost is expected to improve significantly as the supply chain for lithium dihydrogen phosphate and other raw materials is established [11] - Longjiang Securities predicts that by 2025, the self-supply rate of lithium dihydrogen phosphate could reach 30-40%, potentially reducing the cost of LFP by 600-700 yuan per ton, with a long-term goal of 100% self-supply contributing to a reduction of 2,000 yuan per ton [11]