The battery defense battle is successful, the price of lithium iron phosphate increases for the first time this year

According to the Securities Times, lithium iron phosphate ushered in its first price increase in the year. Jiangxi Zhili Technology announced the 'Price Adjustment Explanation Letter' on November 19, and the company decided to increase the order price of lithium iron phosphate by RMB 1,000 per ton from November 19. According to the industry website, since mid-November, the lithium iron phosphate cathode company has sent letters to increase prices. The current average industry price has increased from the lowest 33,000 yuan/ton to 35,000 yuan/ton, an increase of about 2,000 yuan/ton. According to data released by the China Automobile Association, the total installed capacity of lithium iron phosphate batteries in October increased by 127.5% year-on-year and 3.5% month-on-month. This has doubled the year-on-year increase of lithium iron phosphate batteries for three months. Industry insiders believe that the current safety and low cost of lithium iron phosphate batteries, as well as the industry and the market’s more rational understanding of the high endurance of electric vehicles, have promoted a new wave of market penetration of lithium iron phosphate batteries. Analysts predict that with the decline of subsidies and the improvement of technology level, the market share of lithium iron phosphate is expected to be equal to or exceed that of ternary batteries in the future. In fact, the automotive market is only one of the many application markets for lithium iron phosphate batteries. The demand for lithium iron phosphate is also increasing in markets such as 5G base station energy storage, electric ships, power tools, and shared power exchange. On the supply side, the supply of lithium in the salt lake was blocked in winter, and the partial shutdown of overseas upstream mines caused supply to shrink, which also further promoted the increase in the price of lithium iron phosphate. Securities officials pointed out that due to the narrowing of the product differentiation of important players in the industry, the increase in oversupply, and the reduction in the price of upstream lithium carbonate, the price of iron-lithium cathode has been decreasing year by year in the past three years. At present, the price of iron-lithium cathode is near the break-even point. The recent increase in the price of lithium carbonate has brought greater cost pressure, which may cause the price of iron and lithium to rise further. Editor's comment: As the core component of electric vehicles, the battery occupies a large cost of an electric vehicle, and it has also become an important aspect of car companies' consideration and selection. It is reported that lithium iron phosphate batteries are generally about 20% cheaper than ternary lithium batteries. Compared with vehicles equipped with ternary lithium batteries, vehicles equipped with lithium iron phosphate batteries have at least a price advantage of nearly 5,000 yuan. At present, BYD is the world's largest producer of lithium iron phosphate batteries. The rise in the price of lithium iron phosphate also indicates that related companies in the industry chain will benefit. As to whether it will affect the terminal price of electric vehicles, it remains to be seen. (Text/Car Home Weng Meng) Disclaimer: Some pictures and content of articles published on this site are from the Internet. If there is any infringement, please contact to delete. Previous post: The recovery of the global cobalt market is imminent