The growth has doubled in three consecutive months, and the loading of lithium iron phosphate batteries is hot

On November 23, the data released by the China Automobile Association showed that 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 growth of lithium iron phosphate batteries for three consecutive 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. The upstream raw material end of lithium iron phosphate batteries has quietly ushered in a wave of price increases. Data show that the price of battery-grade lithium carbonate has risen to 45,200 yuan/ton, which is 3000-4000 yuan/ton from the bottom of the year. Since mid-November, lithium iron phosphate cathode companies have also sent letters to increase prices. The current industry average price has increased from the lowest 33,000 yuan/ton to 35,000 yuan/ton. Essence Securities analyst Qi Ding said that the rise in lithium carbonate prices comes from the dual logic of supply-side tension and demand-side outbreaks. Ziding said that since the third quarter of 2020, leading iron-lithium cathode companies such as Defang Nano, Beterui, Hunan Yuneng, Hubei Wanrun, and battery manufacturers such as BYD and Guoxuan Hi-Tech have all reached full production. With a demand of 120,000 tons, the effective production capacity of iron-lithium cathode is expected to be about 200,000 tons in 2020; the effective production capacity is expected to be about 300,000 tons in 2021. In 2021, it is not ruled out that the actual effective production capacity of small companies is lower than the theoretical production capacity, and the industry may be in a tight balance between supply and demand. At the same time, overseas two-wheelers are currently being started. As iron-lithium batteries have a battery life of up to 50-100km and have obvious advantages in substitution, there are about 10,000 tons of iron-lithium batteries for two-wheelers. In terms of base stations, iron-lithium batteries have large capacity and cost-effectiveness. Advanced advantages, in the future, it is expected to make efforts in the fields of power frequency modulation and energy storage. Open source securities analysts Liu Qiang and Xiong Hao reminded that in the short term, due to Tesla and other terminal companies vigorously promoting the iron-lithium version of the model, the supply chain of iron-lithium in the Ningde era is showing a tight supply situation, and there has been a price increase. In the medium term, the next two to three years will be a critical period for parity between new energy vehicles and fuel vehicles, and the proportion of cost-effective iron-lithium batteries will continue to increase. Industrial Securities believes that the profitability of lithium iron cathode companies is expected to increase due to the rise in the price of lithium carbonate in the upper reaches of the industrial chain.