Strong growth momentum in the lithium iron phosphate market in 2021

Release date：2021/11/29

The installed capacity of lithium iron phosphate batteries will rise rapidly in 2021, and the market will grow strongly

Lithium iron phosphate battery (LFP battery) is a lithium ion battery that uses lithium iron phosphate (LiFePO4) as the cathode material. It has the advantages of high energy density, high safety, long cycle life, and no memory effect. It is the mainstream lithium ion in the market. One of the battery products. With the rapid development of the new energy automobile industry, the demand for lithium iron phosphate batteries as a power battery is growing rapidly. From 2018 to 2021, due to factors such as battery life, cost, and policies, my country's lithium iron phosphate battery market fluctuates greatly.

Our national policy encourages the development of the new energy automobile industry. The higher the energy density of the power battery, the greater the subsidy. Compared with the ternary battery, the lithium iron phosphate battery has a weaker energy density advantage. From 2018 to 2019, its demand in the power battery field Continued to decline, ternary batteries dominate. Among the cathode materials of ternary batteries, nickel and cobalt are indispensable. The prices of nickel and cobalt are relatively high. Since 2020, due to the tight market supply, the prices of nickel and cobalt have risen rapidly. Superimposed on the decline of my country’s power battery subsidy policy, ternary batteries The increasing cost pressure has given opportunities for the development of lithium iron phosphate batteries. 　　

In order to further increase the energy density, the ternary battery has been developed towards high nickel, and its safety has declined. The repeated spontaneous combustion accidents of electric vehicles have caused the market trust to decline. In contrast, the safety advantages of lithium iron phosphate batteries are prominent, and in March 2020, BYD launched an improved lithium iron phosphate blade battery, which has significant safety effects. At the same time, lithium iron phosphate batteries are constantly improving their internal structure to increase their energy density. With the advantages of cost, safety and the continuous narrowing of the battery life gap, in 2020, the installed capacity of lithium iron phosphate batteries will increase rapidly. According to the "China's Lithium Iron Phosphate Battery Industry Market Supply and Demand Status Quo and Development Trend Forecast Report 2021-2025" released by the New Sijie Industry Research Center, my country's lithium iron phosphate battery production and installed capacity have exceeded three times from May to July 2021. Meta battery. From January to September 2021, the installed capacity of power batteries in my country exceeded 82GWh, of which the installed capacity of ternary batteries accounted for 58%. Although the installed capacity of lithium iron phosphate batteries in my country in the first three quarters is still lower than that of ternary batteries, its proportion is rising rapidly, and it has provided supporting products for best-selling cars and high-end cars. The number of supporting models continues to increase. From the perspective of 2021 , The development momentum of the lithium iron phosphate battery industry is even stronger.

Industry analysts from New Thinking said that due to the declining demand for lithium iron phosphate batteries in my country from 2018 to 2019, the market has gradually moved closer to leading companies, weaker companies have gradually withdrawn, and industry concentration has continued to increase. In 2020, among the installed capacity of lithium iron phosphate batteries in my country, CATL, BYD, and Guoxuan Hi-Tech will account for 90% of the total installed capacity, indicating a high degree of market concentration. However, in 2021, the demand for lithium iron phosphate batteries will continue to explode. It is expected that other companies will increase their output except for the leading enterprises. From 2021 to 2022, the competition in the lithium iron phosphate battery market in my country will become increasingly fierce.