The continuous growth of electric vehicle sales has driven the further increase in the installed penetration rate of lithium iron batteries, driving more and more ternary precursor and ternary material companies to accelerate their entry into the LFP industry. The data shows that from January to June 2022, the installed capacity of power batteries in China is 100.24GWh, of which the installed capacity of LFP power batteries is 55.02GWh, a year-on-year increase of 217%, accounting for 55% of the total installed capacity. Affected by this, in the first half of 2022, the China's shipment of LFP materials was about 410,000 tons, a year-on-year increase of 136%, and the market demand for iron phosphate and LFP materials continued to rise. Under this circumstance, the ternary material industry chain companies are further accelerating their industrial layout in the field of LFP materials, enriching the product matrix, and creating the second growth curve of performance.
1.CNGR may become an important participant in the competition in the iron phosphate market
On July 26, 2022, CNGR announced that the company signed a strategic cooperation agreement with Ruipu. It is expected that from 2022 to 2030, the two parties will achieve a total sales of ternary precursors and iron phosphate products of 800,000 tons - 1 million tons. As a global leader in ternary precursors, CNGR has won a long-term supply order for Ruipu Lanjun with a total volume of 800,000-1,000,000 tons of precursors, which will help to further increase the shipment volume and market share of its ternary precursors . It is worth noting that in this supply order, CNGR will also supply iron phosphate products to Ruipu Lanjun. This means that CNGR has horizontally expanded from the ternary precursor market to the iron phosphate market, or will become the iron phosphate market important player in the competition.
In December 2021, CNGR announced that it will invest 10 billion yuan to build an integrated project of iron phosphate and lithium iron phosphate material production lines with an annual output of 200,000 tons in Kaiyang County, Guiyang City. At the same time, within the scope of the chemical industry park, phosphate rock to produce phosphoric acid or yellow phosphorus and monoammonium phosphate will be built, and the mining area and phosphate rock mining will also be supported. In June 2022, CNGR announced that it intends to raise no more than 6.68 billion yuan to expand production capacity, of which 2.311 billion yuan will be used to build an iron phosphate project with an annual output of 200,000 tons in Kaiyang Base, Guizhou, to accelerate the construction of its iron phosphate project.
2.GEM is actively laying out the field of iron phosphate and LFP materials
In addition to CNGR, GEM, another leading ternary precursor company, is also actively deploying in the fields of iron phosphate and LFP materials. On July 24, 2022, GEM announced that the company has reached a strategic cooperation agreement with Ruipu. It is planned to jointly build a full life cycle value chain system for the recovery, recycling and remanufacturing of used power batteries and their wastes on a global scale to promote the green recycling of power batteries. According to the agreement, GEM will supply 30,000 tons of LFP materials or ternary cathode materials to Ruipu through directional circulation; within the term of the agreement, Ruipu will cooperate to supply 5GWh of GEM power battery finished products.
This means that GEM will also supply LFP materials to customers on the basis of ternary precursors and ternary material products, and is expected to supply iron phosphate products in the later stage to further enrich its product matrix. In January 2022, GEM announced that the company has reached a strategic cooperation with YONFER to jointly build a new energy material industry chain of "phosphorus resources-iron phosphate-lithium iron phosphate", and set up a joint venture company to build a 150,000-ton/year iron phosphate project and 10 10,000 tons/year lithium iron phosphate material project. GEM said that the company's 20,000-ton LFP material production line has been completed and has entered the production line commissioning stage, and a new 50,000-ton LFP material project is under planning.
3.A number of ternary material companies have deployed LFP material projects
The main purpose of the diversified layout of the head ternary precursor enterprises is to meet the diversified product needs of their downstream customers. At present, a number of ternary material companies, including RONBAY TECHNOLOGY, CHANGYUAN LICO, WXTC, EASPRING, TIANYUAN GROUP, TIANLILINENG, etc., are all planning LFP material projects to supplement the cathode product line. In order to meet the diversified product needs of downstream customers and further enhance the company's comprehensive competitiveness in the field of cathode materials.
The new LFP material business of the above-mentioned ternary material companies is expected to use their competitive advantages in the industrial chain to supply LFP materials to their head battery customers, thereby driving further growth in the market demand for iron phosphate precursors. Under this circumstance, the head companies of ternary precursors are also actively adding iron phosphate products, improving their precursor business segments, and further enhancing their competitiveness in the precursor field. When it comes to LFP materials, you may want to know who are the leaders in China in this field. Please click on top 10 lithium iron phosphate materials companies in China to see more information about the leading companies in the LFP materials industry.
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