In April 2020, several major ministries and commissions issued new subsidy policies, which made the application of lithium iron phosphate in passenger cars regain economic advantages. Especially in the past 1-2 years, under the "endorsement" of the popular Mini EV and the medium and high-end star cars represented by BYD Han and Tesla Model 3, lithium iron phosphate has maintained a strong penetration trend.

In 2021, the installed capacity of lithium iron phosphate from January to July totaled 28gwh, a year-on-year increase of 333%. In addition, the demand for lithium iron phosphate has been further determined in terms of power energy storage, 5g base station construction and the replacement of lead-acid by lithium battery.

According to the data predicted by Hua'an Securities: under the neutral assumption, the shipment of lithium iron phosphate battery is expected to reach 343gwh in 2025, including about 188gwh for power, about 10gwh for base station, about 28gwh for energy storage, about 35gwh for electric ships and about 82gwh for lead-acid substitution.

According to the prediction of GGII, the domestic lithium iron phosphate battery shipment will be 90gwh in 2021.

From the above data, we can see that there is great room for growth between the current shipment and the demand after four years. Enterprises in the industrial chain began to layout their production capacity early, especially for lithium carbonate and iron phosphate in the cathode industrial chain with the highest cost.

The investment heat of lithium carbonate is concentrated in the extraction of lithium from salt lakes. As mentioned in the previous article（ Wk33 (8 / 16-8 / 22) industry observation and thinking,

In the case of lithium extraction from salt lake to maintain high heat, the capital extends to iron phosphate and phosphorus chemical industry in the upper reaches.

Even according to incomplete statistics, the current capacity of iron phosphate is about 220000 tons. According to the disclosed project investment announcement or news, the future expansion capacity has reached 2045000 tons, which does not rule out the subsequent implementation of new investment projects.

In particular, the layout of chemical enterprises Longbai group and xinyangfeng in iron phosphate industry in recent August is more eye-catching.

New capacity of iron phosphate (incomplete statistics)

New capacity of lithium iron phosphate (incomplete statistics)

Lithium iron phosphate battery is one of the core products of Tuorui new energy. It has three characteristics: high specific energy, high safety and long life! Relying on the basic technical service platform of lithium-ion power battery process equipment of Industrial Research Institute of Guangzhou Chinese Academy of Sciences, the company adopts a unique flat plate laminated product line, and the series of high-energy lithium iron phosphate batteries have reached the international leading level.