China’s lithium industry is experiencing a welcome turnaround after major players endured losses from price slumps in recent years. The Securities Times reported that lithium iron phosphate (LFP) producers are now receiving large orders and some are even raising prices in response to rising demand and technological advancements in their products.
According to a report by the Securities Times, mainstream LFP manufacturers are increasing their capacity utilization, particularly for high-end products, due to strong demand. A leading lithium producer in central China is operating its fourth-generation LFP production lines at full capacity, indicating a surge in orders.
In the past few months, companies like Jiangsu Lopal Tech, Fulin Precision, and Shenzhen Dynanonic have received significant orders from major players in the industry such as Blue Oval, CATL, and LG Energy Solution. This increase in demand has prompted some manufacturers, including Hunan Yuneng, to consider raising prices to meet the growing market needs.
Zhai Linlin, an LFP analyst at OilChem, attributed the recent price hikes to a combination of surging market demand and continuous product technology upgrades. LFP batteries, known for their cost-effectiveness, have become the dominant choice for domestic power battery installations, driving manufacturers to invest more in research and development.
After facing losses for the past two years, LFP manufacturers are now focused on turning their fortunes around. With reduced cases of selling at a loss and a more positive outlook on pricing, companies are more determined to support price increases, as noted by Shanghai Iccsino Data senior researcher Zhang Jinhui.
Lithium carbonate and iron phosphate are essential raw materials for LFP batteries, and their prices have experienced fluctuations over the years. Despite a previous decline in lithium carbonate prices, the current market conditions reflect a more stable pricing environment, encouraging manufacturers to capitalize on the growing demand for their products.
Overall, the resurgence of the lithium industry in China signals a positive trend for LFP producers, with increased orders and rising prices indicating a shift towards a more profitable market landscape. As manufacturers continue to innovate and meet the demands of the evolving market, the future looks promising for the lithium industry in China.
