Tight Supply of High-End LFP Drives Listed Companies to Expand Production

Overall, it is expected that high-end lithium iron phosphate (LFP) will remain in a state of tight supply by 2027. On November 2, a listed company specializing in cathode materials based in Hunan made this assessment at its third-quarter earnings briefing. On the same day, another listed company focused on lithium battery materials located in Guangdong also stated at its third-quarter earnings briefing that, given current market demand, the supply-demand relationship for fourth-generation and above products is quite tight. "It is expected that demand for fourth-generation LFP will continue to grow next year; however, production capacity capable of high-quality, stable supply of fourth-generation high-density products remains limited, keeping supply relatively tight." Currently, expansion efforts by listed companies in LFP production have clearly shifted toward the high-end, high-density route. Many new planned and newly commissioned production lines are being built to fourth-generation or higher standards, with some lines reserving compatibility for fifth-generation LFP materials. (Securities Daily)