The boom in lithium iron phosphate continued on the double track

Since mid-August, the lithium iron phosphate market has ended its two consecutive months of sharp decline and opened a bottoming out rally
.
At present, the average price of lithium iron phosphate in the market has reached 155,000 yuan (ton price, the same below), up 3.
33%
from the annual low in mid-August.
In the author's view, benefiting from the demand for new energy vehicle power batteries and the application of electrochemical energy storage, the prosperity of the lithium iron phosphate industry is expected to continue
.

On the new energy vehicle power battery track, the leading edge of lithium iron phosphate market share has gradually expanded
.
Lithium iron phosphate and lithium ternary are the two mainstream technical routes
of new energy vehicle power batteries.
For quite some time in the past, the loading capacity of lithium iron phosphate batteries was much lower than that of ternary lithium batteries
.
Because the cathode material of ternary lithium batteries uses expensive resources such as nickel and cobalt, the cost is higher
than that of lithium iron phosphate batteries.
In recent years, with the help of technological innovation, the disadvantage of relatively poor endurance of lithium iron phosphate batteries has been effectively compensated for, and it has gradually gained the favor
of more new energy vehicle companies.
In 2021, the market share of lithium iron phosphate batteries will reach 51%, surpassing ternary lithium batteries
for the first time.
This year, the loading capacity of lithium iron phosphate batteries continued to expand, and the loading volume in August reached 62% of the total installed volume of new energy vehicle power batteries, while the loading volume of ternary lithium batteries accounted for 38% of the total installed volume, and the gap between the two was further widened
.
Benefiting from the rapid development of new energy vehicles, the application of lithium iron phosphate in power batteries will further grow
.

In the field of electrochemical energy storage in another track, lithium iron phosphate batteries have more development prospects
.
The field of electrochemical energy storage has always been regarded as a lithium battery application market
with greater potential than new energy vehicles.
Lithium iron phosphate due to its long life, safe use, large capacity, green environmental protection and other characteristics, in the field of energy storage application accounted for an increasing proportion
.
At present, the energy storage system supporting lithium iron phosphate batteries has become the mainstream choice
of the market.
In the first seven months of this year, domestic lithium iron phosphate storage energy accounted for more than
90% in the field of electrochemical energy storage.
In particular, at the end of June, the National Energy Administration issued the "Letter of the General Department of the National Energy Administration on Soliciting Opinions on the Twenty-five Key Requirements for the Prevention of Power Production Accidents (2022 Edition) (Draft for Comments)", clarifying that ternary lithium batteries shall not be used for medium and large energy
storage.
This move is good
for the lithium iron phosphate battery industry on the other side of the "rocker".
With the expansion of photovoltaic and wind power generation installed capacity, more and more electrochemical energy storage power stations will be built one after another, and lithium iron phosphate will gain greater market space
.

For the expectation of continued strong downstream demand, the supply of lithium iron phosphate also gives incremental cooperation
.
The effective production capacity of lithium iron phosphate in China increased from 215,000 tons in 2017 to 712,000 tons in 2021, with an average annual compound growth rate of 34.
9%, of which 96.
69%
increased year-on-year in 2021.
This year's production capacity continued to grow, as of August China's lithium iron phosphate effective production capacity reached 1.
0345 million tons / year, an increase of 45.
3%
over 2021.
In the next two years, a total of 1 million tons / year of new production capacity plans will be implemented
.

On the whole, although the current market price of lithium iron phosphate is already at a high level, due to the high prosperity of the new energy automobile industry and the expected growth of electrochemical energy storage demand, leading downstream enterprises will still maintain full production, and the prosperity of the lithium iron phosphate industry will continue to improve
.