News Center

News Center

Company News

Industry News

2021 China Lithium Iron Phosphate Battery Industry Analysis Report

2020-08-10

Lithium iron phosphate (LFP) batteries have been an important part of China's new energy vehicle development strategy. Since 2015, LFP batteries have established their industry advantages in the fields of new energy commercial vehicles and energy storage due to their high safety and long cycle life. With the launch of BYD's "Han" model with LFP blade batteries in the passenger car market in 2020 and the launch of the domestically produced Model 3 with LFP batteries in the second half of 2020, market attention to LFP batteries has increased again.

 

Since 2020, with the increasing attention of downstream terminal users to the safety of new energy vehicles, the number of passenger car models equipped with LFP batteries has begun to increase. Data from the GGII (Gaogong Industry Research Institute) shows that in the first half of 2021, the installed capacity of power batteries was 46.39 GWh, of which LFP batteries accounted for 37.5%, an increase of 9.7 percentage points compared with the first half of 2020. LFP batteries are more widely used in new energy commercial vehicles, while ternary batteries still dominate the new energy passenger vehicle sector. From January to June 2021, ternary material batteries accounted for 70% of the installed capacity of new energy passenger vehicles, while LFP batteries accounted for 30%. The power batteries for new energy commercial vehicles are mainly LFP batteries, accounting for 97% of the installed capacity from January to June 2021.

 

In the first half of 2021, the top-ranking companies in terms of installed capacity of LFP power batteries in China included CATL, BYD, Guoxuan High-tech, Svolt Energy, and EVE Energy. The top five companies accounted for 93.4% of the market share, a slight decrease of 1 percentage point compared with 2020.

 

Driven by the increase in the installed capacity of LFP power batteries, the shipment volume of LFP cathode materials increased in 2020. Domestic shipments of LFP in 2020 reached 124,000 tons, a year-on-year increase of 41%. The growth in shipments of LFP cathode materials in the first half of 2021 was even more significant, exceeding the total shipments for the whole of 2020 at 178,000 tons (including data from battery manufacturers' own production), with industry capacity in short supply.

 

Data from the GGII (Gaogong Industry Research Institute) shows that the competitive landscape of the Chinese LFP cathode material market changed significantly in 2020. Market concentration increased, with the top six companies accounting for 92.2% of the market share. Hunan Yulong, Defang Nano, Hubei Wanrun, and BTR all saw year-on-year increases in shipments, especially Hunan Yulong, whose shipments increased by more than 150% year-on-year, ranking first in the industry with a 25.0% market share. The significant increase in shipments was mainly driven by the sharp increase in demand from battery companies such as CATL and BYD. Due to rapid market growth and capacity constraints among leading companies, shipments from smaller companies increased, and the share of the top six companies fell to 68%. Hunan Yulong maintained its leading position with a 21% market share, followed by Defang Nano and Hubei Wanrun.

 

Data Source: Gaogong Industry Research Institute ( GGII)

Previous Page:

Mainstream power battery for new energy vehicles: Lithium-ion battery

Next Page:

Development and Supply-Demand Status of New Energy Vehicle Power Batteries in 2020

2020 /

08-10

Category:

Industry News