Core Viewpoint - The global competition for lithium iron phosphate (LFP) battery production is intensifying, with major industry players rapidly establishing production facilities in North America and Europe, marking a significant shift in LFP battery capacity from "0 to 1" [1][2][6] Group 1: North American Developments - Tesla's first LFP battery factory in Sparks, Nevada, is nearing completion, with an initial annual capacity of 10 GWh, primarily supplying energy products like Megapack and Powerwall [1] - LGES has launched its first large-scale LFP battery production in Michigan, achieving a total capacity of 21.5 GWh, split between energy storage (16.5 GWh) and electric vehicles (5 GWh) [2] - Ford is set to begin production at its LFP battery factory, which is being built with technology licensed from CATL, with plans to start operations next year [4] Group 2: European Developments - CATL and Stellantis are investing €4 billion to build a 50 GWh LFP battery factory in Spain, expected to start production by the end of 2026 [2] - Volkswagen's battery company PowerCo is constructing an LFP battery factory in Germany with a revised capacity of 20 GWh, scheduled for 2027 [2] - ElevenEs has established the first LFP factory in Europe and plans to expand its capacity to 16 GWh by 2028 to supply local automakers [5] Group 3: Supply Chain and Material Production - The global production and expansion of LFP cathode materials are accelerating, with companies like Longpan Technology and Aosheng Technology investing in new facilities [5] - Chinese material manufacturers are also planning investments in the U.S. and Spain to be closer to downstream customers [5] - The shift towards LFP technology is driven by factors such as the extension of cobalt export bans and changes in U.S. subsidy policies, prompting manufacturers to transition from ternary batteries to LFP [6] Group 4: Market Trends and Data - The global installed capacity of LFP power batteries saw a year-on-year increase of 63% in the first four months of 2025, exceeding 150 GWh and accounting for approximately 53% of the global power battery market [6][7] - The core manufacturing processes and material technologies for LFP batteries remain dominated by the Chinese supply chain, with overseas manufacturers seeking local production through joint ventures and technology licensing [7]

Core Viewpoint - The global competition in the power battery market is intensifying as Chinese battery manufacturers, particularly CATL, gain market share over their South Korean counterparts, driven by the rapid adoption of lithium iron phosphate (LFP) batteries and strategic adjustments by companies like LG Energy Solution (LGES) and Samsung SDI [1][2][9] Group 1: Market Dynamics - In 2024, CATL surpassed LGES in overseas market share for the first time, with CATL's battery installation volume reaching 96.8 GWh compared to LGES's 87.9 GWh, marking a significant shift in the competitive landscape [2] - Major South Korean battery manufacturers, including LGES, Panasonic, and Samsung SDI, experienced slower growth rates in battery installation volumes compared to the industry average, with some reporting declines exceeding 10% [2][9] - The financial performance of these South Korean firms reflected this market shift, as they reported losses attributed to the rapid penetration of LFP batteries and slow adaptation to changing market demands [2] Group 2: Strategic Adjustments - LGES is accelerating its transition to LFP battery production, repurposing existing facilities in Michigan for LFP production and planning to convert some of its NCM battery lines in Tennessee and Ohio [4] - LGES secured a significant contract with Renault's Ampere to supply approximately 39 GWh of LFP batteries from 2025 to 2030, marking a strategic entry into the European market [4] - Samsung SDI is also adapting by introducing LFP production lines in its Indiana facility, aligning with General Motors' shift towards LFP batteries for most of its upcoming electric vehicle models [5] Group 3: Technological Innovations - LGES announced a collaboration with General Motors to develop a new type of lithium manganese iron phosphate (LMFP) battery, which offers over 30% higher energy density than current LFP batteries while maintaining similar costs [5] - Samsung SDI has initiated mass production of the 46 series cylindrical batteries, with plans to expand into the electric vehicle market, while Panasonic is preparing for mass production of its 4680 battery [7] Group 4: Patent Strategies - A patent battle is emerging as LGES and Panasonic established a patent pool named "Tulip Innovation" to protect their intellectual property, which includes over 5,000 patents [8] - The patent pool has already taken legal action against Chinese battery companies for alleged patent infringements, highlighting the importance of intellectual property in the competitive landscape [8][9] Group 5: Future Outlook - The competition in the global power battery market is becoming increasingly multifaceted, with key variables such as LFP technology, cylindrical batteries, and patent litigation shaping the industry's future [9]