China's lithium iron phosphate industry has a large demand and good development prospects
Lithium iron phosphate is an electrode material for lithium-ion batteries. It has the advantages of large discharge capacity, wide sources of raw materials, low price, long service life, low toxicity, and low environmental pollution. It is mainly used in energy storage equipment, power tools, and light electric vehicles. , Small medical equipment, starting power supply, fixed power supply, military, and other fields, so the demand is large.
The "In-depth Market Research and Investment Strategy Recommendation Report on the Lithium Iron Phosphate Industry for 2020-2024" issued by the New Thinking Industry Research Center pointed out that Lithium Iron Phosphate has its own advantages in the competition with other battery materials. The stability, service life, and price are Lithium iron phosphate has the biggest advantage, but it also has problems such as unit energy density and weight. Therefore, it has a large scale of application in the fields of energy storage batteries, new energy special vehicles, and buses, and has a limited market share in the field of new energy passenger vehicles. On the whole, the demand for the lithium iron phosphate industry will continue to develop with the expansion of the industry, and it is expected to reach 105,000 tons in 2021.
From the perspective of market demand, the continuous development of domestic wind power, solar energy, new energy vehicle charging stations, and 5G communication base stations has promoted the steady development of the energy storage battery industry. Domestic electric vehicles, sanitation vehicles, new energy machinery and equipment, electric wheelchairs, and new energy buses The expansion of the market scale has promoted the growth of the lithium iron phosphate battery market, driving the gradual expansion of the demand for the lithium iron phosphate industry.
In the cost structure of lithium iron phosphate, the cost of raw materials is close to 3/4, and the manufacturing cost accounts for about 1/5. Since 2016, the expansion of upstream raw materials has led to a significant drop in the cost of raw materials, which has caused the price of lithium iron phosphate to drop by more than half. The price competitive advantage is more obvious.
In recent years, the domestic new energy vehicle subsidy policy has gradually withdrawn, and the new energy vehicle industry has paid more attention to cost control. In recent years, battery explosions have occurred from time to time, which has made new energy batteries and automobile manufacturers pay more attention to battery safety. The advantages in the competition of metamaterials are even more obvious. In 2019, the domestic new energy vehicle lithium iron phosphate supporting models will be close to 70%.
In 2019, my country’s new energy vehicle sales exceeded 1.2 million, accounting for nearly 4.7% of total new vehicle sales. According to China’s Ministry of Industry and Information Technology’s New Energy Vehicle Industry Development Plan (2021-2035), my country’s new energy vehicle sales by 2025 proportion will be further increased to 25% to provide support for the expansion of demand for the lithium iron phosphate industry.
At present, there are many manufacturers in the lithium iron phosphate industry in China, such as Shenzhen Xinzhoubang Technology Co., Ltd., China Baoan Group Co., Ltd., Hefei Guoxuan High-tech Power Energy Co., Ltd., Zhejiang Highlide New Materials Co., Ltd., and Beijing Dangsheng Materials Key enterprises such as Technology Co., Ltd. have certain advantages in market competition.
Research analysts at New Ideas believe that the lithium iron phosphate industry is still in the development stage. Although there are many companies in the industry, there is still room for technological progress. The industry demand is large and will maintain stable growth in the future, with good development prospects.
