Leading Lithium Iron Phosphate Material Companies Accelerate Global Deployment

According to incomplete statistics from Battery China, as of now, international automakers including Tesla, Volkswagen, BMW, Mercedes-Benz, Ford, Hyundai, Renault, General Motors, Nissan, Toyota, and Honda have already or plan to expand their share of lithium iron phosphate battery assembly.

At the same time, almost all overseas energy storage system integrators and owners have turned to the lithium iron phosphate route, and will gradually adopt lithium iron phosphate batteries in future energy storage products to replace the ternary batteries that have long been dominated by Japanese and Korean battery companies. Whether in China or the global market, the cost-effectiveness of lithium iron phosphate is a sharp weapon. In the future, international mainstream car companies will continue to lean towards the lithium iron phosphate battery technology route, which will in turn drive the growth of the installed share of lithium iron phosphate batteries in the global new energy vehicle market. Affected by this, the lithium iron phosphate positive electrode material market will also "rise with the tide."

Based on the above trends, as well as the need to be close to the market and to meet customer needs nearby, China's leading?lithium iron phosphate material companies have taken action to carry out global production capacity layout, trying to seize this large global incremental market first.

Since last year, Chinese battery material companies have been expanding overseas intensively and setting up global layouts. On the one hand, this is because overseas car companies and energy companies have gradually realized the high cost-effectiveness of lithium iron phosphate, as well as its strengths in high safety and long cycle life, and are increasing the introduction of lithium iron phosphate batteries for related electric vehicle models. The future incremental demand in overseas markets is huge. On the other hand, it is also because of the intensified competition in the domestic market, the mismatch between supply and demand of lithium iron phosphate materials, and the temporary saturation of production capacity. Companies are in urgent need of expanding new markets.

From the perspective of overseas destinations, domestic lithium iron phosphate material companies are currently mainly targeting Southeast Asia, Morocco, Europe and North America, all of which focus on building battery bases close to customers or avoiding trade risks.

CNGR?and Huayou Cobalt have both chosen to build lithium iron phosphate material bases in Morocco. On the one hand, Morocco has rich phosphate resources (Morocco has proven phosphate reserves of 50 billion tons, accounting for 71% of the world's reserves), and the region has obvious location advantages. Morocco has signed a free trade agreement with the United States, which can help the above-mentioned material companies radiate the North American and even European markets.

At present, leading lithium battery companies such as EVE Energy, Gotion Hi-Tech, Sunwoda, REPT, and LG Energy Solution have invested or are preparing to invest in and build factories in Southeast Asia. Lopal?Technology has planned a 120,000-ton lithium iron phosphate project in Indonesia, also targeting the region's huge demand for lithium iron phosphate materials in the future.

Source: Battery China (Website)