Lithium iron phosphate batteries welcome the 'second spring' of development

At present, the new energy automobile industry has begun to shift from subsidy-driven to market-driven, and the more cost-effective lithium iron phosphate battery has returned to the public’s view. Recently, related companies have moved frequently to increase their efforts in the field of lithium iron phosphate batteries, and continue to enhance the comprehensive competitiveness of their products. Industry insiders said that 2021 will usher in a year of growth in demand for lithium iron phosphate, which is expected to increase by 80% year-on-year. With the continuous penetration of lithium iron phosphate batteries in the low-end market, especially the advancement of battery technology, the lithium iron phosphate batteries will restart to open up the market space starting in 2020, and its demand has rapidly reversed upwards. According to data released by the China Automotive Power Battery Industry Innovation Alliance a few days ago, in December 2020, my country's power battery sales totaled 12.2GWh, a year-on-year increase of 56.9%. Among them, the sales of ternary lithium batteries were 6.5GWh, an increase of 9.3% year-on-year, accounting for 53.2% of total sales; the sales of lithium iron phosphate batteries were 5.6GWh, an increase of 244.2% year-on-year, accounting for 45.8% of total sales. In 2020, my country's cumulative sales of power batteries reached 65.9GWh, a cumulative decrease of 12.9% year-on-year. Among them, the cumulative sales of ternary lithium batteries were 34.8GWh, a cumulative decrease of 34.4% year-on-year; the cumulative sales of lithium iron phosphate batteries was 30.8GWh, a cumulative year-on-year increase of 49.2%, and it was the only product that achieved positive year-on-year growth. CITIC Securities pointed out that at present, mainstream overseas new energy vehicle companies such as Tesla and Daimler have clarified the path of lithium iron phosphate batteries. It is expected that other overseas car companies such as BMW and Volkswagen will also choose lithium iron phosphate in their electrification paths. Program, lithium iron phosphate battery is expected to achieve global matching. Active layout With the development of lithium iron phosphate batteries ushering in the 'second springAt the 10th National Science and Technology Conference and Supplier Conference of Guoxuan High-Tech held recently, Guoxuan High-Tech released 210Wh/Kg lithium iron phosphate battery, which realized key technological innovation in many aspects. Guoxuan High-Tech said that the energy density of the lithium iron phosphate 210Wh/Kg single battery has reached the highest level known among the current lithium iron phosphate system products, with safer performance and more promising market application prospects. Penghui Energy recently responded to investors’ questions on the Shenzhen Stock Exchange’s interactive platform and stated that the company’s current production and sales of new energy vehicle power batteries are all lithium iron phosphate batteries, and communication base station energy storage batteries are also lithium iron phosphate batteries, part of consumption and light power applications There are also a large number of lithium iron phosphate batteries in the field. Longpan Technology recently issued an announcement that the company intends to acquire the lithium iron phosphate-related assets and businesses within the scope of Betteri’s consolidated statements through itself or its subsidiaries, and further expand the company’s business system with the help of Bateri’s technical and market advantages. BYD recently completed its investment in Hunan Yuneng to further improve the strategic layout of upstream raw materials for lithium iron phosphate batteries. BYD said that as the demand for new energy vehicles increases and the share of lithium iron phosphate power batteries increases, the demand for upstream raw materials will increase substantially. Through industrial investment, BYD can better leverage the synergy of the upstream and downstream industrial chains and enhance its competitive advantage. Upstream leading companies may benefit from Everbright Securities, saying that the current subsidy policy for new energy vehicles is gradually declining and the sensitivity is gradually decreasing. Auto manufacturers are more in accordance with market-oriented strategies to choose the best battery, and the more cost-effective lithium iron phosphate is gradually becoming the better s Choice. At the same time, in areas other than passenger cars, emerging applications such as passenger cars, logistics vehicles, communication energy storage, photovoltaic energy storage are less sensitive to energy density, and have higher requirements for safety and cost performance. Lithium iron phosphate will also Further benefit. The above factors make the long-term trend of lithium iron phosphate positive. According to the calculations of CITIC Securities, the demand for lithium iron phosphate cathode materials is expected to be 130,000 tons, 240,000 tons and 340,000 tons in 2020, 2021 and 2022, respectively. Taking into account the global demand for power batteries and energy storage batteries in the future, it is estimated that the global demand for lithium iron phosphate cathode materials in 2025 will be about 980,000 tons, corresponding to a market size of about 28 billion yuan, with an average annual compound growth rate of 43% from 2020 to 2025. ,increase rapidly. Shenang Securities pointed out that due to the bottoming out of the price of lithium iron phosphate and the dual motivation of direct demand increase and end-application structural adjustments to push up demand, lithium iron phosphate will usher in a situation where both volume and price rise. In particular, the penetration rate of lithium iron phosphate in domestic new energy vehicles and passenger cars has increased, the rapid development of renewable energy power generation has increased the demand for energy storage installations, and the accelerated construction of 5G base stations have become the main source of demand for lithium iron phosphate in the future. As the market-oriented competition of lithium batteries intensifies, high-quality manufacturers are expected to continue to expand their market share by virtue of their cost and technological advantages. CITIC Securities also pointed out that the concentration of the lithium iron phosphate material industry has continued to increase after the industry cleared in the past few years. Even in the state of overall oversupply, the production capacity of high-quality enterprises is still tight. Future competition will mainly rely on cost advantages, and industry leaders are expected to improve their profitability by virtue of scale advantages and cost-reduction techniques.