In-Depth Analysis of the Competitive Landscape of the Lithium Iron Phosphate Cathode Material Industry

Based on collected data and information, I will provide you with a systematic analysis report on the

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Lithium iron phosphate (LiFePO4, LFP) cathode material, as a core material for power batteries and energy storage batteries, has continued to expand its market share in the new energy vehicle and energy storage sectors in recent years, thanks to its advantages of

and [1].

According to data from EVTank, China’s shipment volume of lithium iron phosphate cathode materials grew from 66,000 tons to 2.427 million tons from 2018 to 2024, with a compound annual growth rate of over 80%. In 2024, it grew by 48.2% year-on-year, continuing the high-growth trend. Global demand is expected to reach 3.5 million tons in 2025 and is expected to exceed 4.6 million tons in 2026 [2][3].

• Increasing Penetration of New Energy Vehicles
  : Data from May 2024 shows that the proportion of lithium iron phosphate batteries in domestic power battery loading volume has exceeded 80% [1]
• Boom in Energy Storage Industry
  : Lithium iron phosphate accounts for an absolute dominant share of 94.4% in the energy storage battery sector [1]
• Increasing Acceptance in Overseas Markets
  : Demand is strong in European and American markets, and Chinese enterprises dominate global production capacity [4]

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In 2024, China’s lithium iron phosphate cathode material industry presents a clear

competitive landscape:

Echelon	Enterprise	Market Share	Characteristics
First Echelon	Hunan Yuneng	28.8%	Absolute leader, ranked first in China for four consecutive years
Second Echelon	Defang Nano, Wanrun New Energy	10-14%	Technology-leading, obvious scale advantages
Third Echelon	Longpan Technology, Youshan Technology, etc.	5-8%	Rapid growth, active expansion
Fourth Echelon	Other small and medium-sized enterprises	<5%	Facing elimination pressure

• Market Share
  : Shipment volume reached approximately 700,000 tons in 2024, with a market share of 28.8%, and capacity utilization rate reached 101.3% (ranking first in the industry) [2][3]
• Technical Route
  : High-temperature solid-state method, focusing on high-compaction density (≥2.6g/cm³) products
• Customer Structure
  : Deeply bound with CATL and BYD, accounting for 40%-50% of their respective shares [1]
• Integrated Layout
  : Won the exploration right for phosphate ore, promoting upstream integration to reduce costs
• 2025 Planned Capacity
  : 923,200 tons

• Market Share
  : 14%, with a production capacity of approximately 300,000 tons [2]
• Technical Route
  : Ferric nitrate method (liquid-phase method), with excellent cycle performance
• Core Advantage
  : Nano lithium iron phosphate technology, with industry-leading product consistency
• Customers
  : CATL, Tesla, etc.

• Market Share
  : 10%, with shipment volume of 228,200 tons in 2024, a year-on-year increase of 39.07% [1]
• Technical Route
  : Solid-state ferric phosphate method
• Technological Breakthrough
  : The 4th-generation high-compaction density product reaches over 2.60g/cm³, with electrode sheet compaction of 2.75g/cm³
• Customers
  : CATL, etc.

• Market Share
  : 8%, with a production capacity of approximately 200,000 tons [3]
• Core Advantage
  : Leading overseas market layout, signed a 160,000-260,000 ton supply agreement with LG Energy Solution [5]
• Technological Iteration
  : 4th-generation one-sintering high-compaction lithium iron phosphate material, with multi-dimensional breakthroughs in performance, cost, and environmental protection

• Market Share
  : Approximately 5%
• Technical Route
  : Ferrous oxalate method, an exclusive process in the industry
• Core Advantage
  : Processing fee premium of RMB 2,000-3,000 per ton, mainly supplying CATL [6]
• Production Capacity
  : 200,000 tons in Yichun is under renovation and expansion, and the Suining Shehong base is operating at full capacity

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Main technical routes and representative enterprises for lithium iron phosphate cathode materials:

Technical Route	Representative Enterprises	Advantages	Disadvantages
Solid-State Ferric Phosphate Method	Hunan Yuneng, Wanrun, BYD, Gotion	Mature process, high energy density	Fierce competition, no premium
Ferric Nitrate Method (Liquid-Phase Method)	Defang Nano	Excellent cycle performance, good batch consistency	Average energy density
Ferrous Oxalate Method	Fulin Precision	High energy density, processing fee premium	Relatively high cost
Iron Oxide Red Method	Chongqing Terui, GCL	Low cost	Relatively low performance

The current industry is in the iteration period from

:

• Definition of 4th-Generation LFP
  : Powder compaction density ≥2.6g/cm³
• Performance Advantage
  : Energy density increased by 8-10%, with a premium ability of RMB 2,000-3,000 per ton higher than ordinary 3rd-generation products [2]
• Enterprises with Layout
  : Hunan Yuneng (CN-5, YN-9 series), Fulin Precision, Defang Nano, Longpan Technology, Wanrun New Energy, etc.

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In 2024, the lithium iron phosphate industry as a whole fell into a

dilemma:

Enterprise	Revenue (100 million RMB)	Net Profit (100 million RMB)	Gross Margin (%)	Capacity Utilization Rate (%)
Hunan Yuneng	159	5.6	8.0	101.3
Defang Nano	68	-2.8	-1.9	75.4
Wanrun New Energy	45	-3.5	0.2	85.0
Longpan Technology	52	-1.1	-2.1	72.0
Fulin Precision	35	1.2	1.7	67.1
Anda Technology	18	-2.3	-5.5	55.0

1. Fluctuations in Lithium Carbonate Prices
   : Raw material costs account for over 60% of total costs, and sharp price fluctuations affect profitability [7]
2. Decline in Processing Fees
   : Intensified industry competition leads to continuous pressure on processing fees
3. Overcapacity
   : The industry’s average operating rate is only 50.41%, with a large number of small and medium-sized production capacities idle [8]

• Hunan Yuneng
  : The only leading enterprise with positive gross margin, with a capacity utilization rate of 101.3%
• Fulin Precision
  : Achieved profit recovery relying on ferrous oxalate method technology
• Longpan Technology
  : Supported by overseas orders, capacity utilization rate is steadily increasing

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The cost of lithium iron phosphate cathode materials mainly consists of the following parts:

Cost Item	Unit Consumption	Unit Price (10,000 RMB/ton)	Cost Proportion
Lithium Carbonate	0.25 tons	7.42	~50%
Ferric Phosphate	0.97 tons	1.05	~28%
Processing Fees and Others	-	0.92	~22%

: Formula-based pricing is adopted, with the formula: “Monthly average price of battery-grade lithium carbonate × lithium salt consumption discount coefficient + fixed fees (ferric phosphate + processing fees)” [8]

Leading enterprises are accelerating the extension to upstream links such as phosphate ore and ferric phosphate:

• Hunan Yuneng
  : Won the Huangjiapo Phosphate Ore, which will be mined in 2025
• Wanrun New Energy
  : Full-process integrated production mode, with self-sufficiency in main materials
• Longpan Technology
  : Supporting ferric phosphate production capacity

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Since 2024, China’s export volume of lithium iron phosphate has increased significantly:

• In August, export volume reached 262 tons, a month-on-month increase of 60% and a year-on-year increase of 194% [4]
• In October, export volume reached approximately 5,746.87 tons, a month-on-month increase of 77% from September and a year-on-year increase of 1759% [5]

Enterprise	Overseas Layout	Cooperative Customers
Longpan Technology	Production line planning in Poland	LG Energy Solution (160,000-260,000 tons), Blue Oval, Eve Energy
RBTC	First European production line in Poland	CATL (3.05 million ton large order)
Envision AESC	Factory in Spain (to be put into operation in 2026)	-
CATL	Multiple bases in Europe	LG Energy Solution, Renault Ampere
Hunan Yuneng	Almost zero overseas revenue	Lags behind competitors

• Cost Advantage
  : China’s lithium iron phosphate battery industrial chain is complete, with costs significantly lower than those of local European and American manufacturers
• Technological Leadership
  : 4th-generation high-compaction density product technology leads the world
• Production Capacity Scale
  : Approximately 90% of global lithium iron phosphate production capacity is located in China

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Lithium manganese iron phosphate is regarded as an upgraded version of lithium iron phosphate:

• Voltage Platform
  : Increased from 3.2V to 3.6-4.0V
• Energy Density
  : Increased by 15-20%
• Enterprises with Layout
  : RBTC (full production and sales for consecutive months), Defang Nano, Beijing Easpring Material Technology

Indicator	2023	2024	Trend
CR10	89.6%	79.5%	↓ Decreased by 10.1 percentage points
Reason	Increase in new entrants, demand from energy storage market drives release of second and third-tier production capacities

2025 Forecast:

• High-end Products
  : Tight supply and demand, increased concentration
• Low-end Products
  : Accelerated capacity clearing, intensified competition

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1. Stable Leading Position
   : Hunan Yuneng has a market share of 28.8%, ranking first for four consecutive years
2. Intensified Technological Differentiation
   : 4th-generation high-compaction density products have become the core competitive focus
3. Obvious Profitability Pressure
   : The industry has been in continuous loss for over 36 months, with an average asset-liability ratio of 67.81% among 6 listed enterprises
4. Accelerated Overseas Layout
   : Longpan Technology, RBTC and other enterprises take the lead in layout

Dimension	2025-2026 Forecast
Demand Side	Increasing penetration of new energy vehicles + boom in energy storage, leading to sustained demand growth
Supply Side	Capacity expansion for high-end products, capacity clearing for low-end products
Technology Side	4th-generation products become standard, accelerated introduction of lithium manganese iron phosphate
Profitability Side	Processing fees hit bottom and rebound, leading enterprises recover first
Overseas Market	Significant production capacity gap remains in Europe, Chinese enterprises dominate globalization

• Focus on Leading Enterprises
  : Hunan Yuneng (scale advantages, customer structure, integrated layout)
• Focus on Technology Leaders
  : Defang Nano (liquid-phase method technology), Fulin Precision (ferrous oxalate method)
• Focus on Overseas Pioneers
  : Longpan Technology (cooperation with LG Energy Solution), RBTC (large order from CATL)
• Focus on Marginal Improvements
  : Enterprises with increased capacity utilization rate and bottoming-out profitability

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[1] Sina Finance - “Head-to-Head Competition of Lithium Iron Phosphate Cathode Material Leaders” (https://finance.sina.com.cn/roll/2025-06-19/doc-infaqzvp3793452.shtml)

[2] Energy Finance Network - “Top 10 Companies of the Four Main Lithium Battery Materials in 2024 Released, What Will the Competitive Landscape Be in 2025?” (https://inewenergy.com/newsn/top/43323.html)

[3] Securities Times - “Large Orders for Lithium Iron Phosphate Emerge Frequently, High-End Production Capacity Continues to Expand” (https://stcn.com/article/detail/2156029.html)

[4] China Energy News - “Global Demand for Lithium Iron Phosphate Batteries Booms, Chinese Enterprises Accelerate Overseas Expansion” (https://www.ditan.com/industry/energy-storage/9865.html)

[5] Wall Street CN - “Lithium Iron Phosphate Cathode Companies Are All Receiving Surge Orders, Why Is This Global No.1 Leader Silent?” (https://m.thepaper.cn/newsDetail_forward_32193577)

[6] Bank of China Securities - “In-Depth Report on Lithium Iron Phosphate Industry” (https://pdf.dfcfw.com/pdf/H3_AP202504251662024272_1.pdf)

[7] Sinolink Securities - “In-Depth Research Report on Fulin Precision” (https://pdf.dfcfw.com/pdf/H3_AP202504241661432885_1.pdf)

[8] Futu News - “Lithium Iron Phosphate Price Surge: Supply and Demand Restructuring Amid Demand Boom” (https://news.futunn.com/hk/post/66618919)

[9] Securities Times - “Over 120 Billion RMB! RBTC Signs Large Order with CATL” (https://www.stcn.com/article/detail/3590768.html)