In March, domestic FP production increased by 10% MoM and surged by 81% YoY. In terms of supply, most FP manufacturers raised their production schedules in March compared to February, leading to a significant boost in supply. Some companies had ample orders, operating their production lines at full capacity. Additionally, new entrants in the FP market are gradually ramping up their capacity, with production expected to continue rising in the future.

[Lithium Iron Phosphate (Manganese) Project: Equipment Installation Phase of the First-Phase 20,000-ton Project of Gansu Elephant L(M)FP] Gansu Elephant Energy Technology Co., Ltd. has planned a total of 100,000 tons of L(M)FP per year, with the first-phase project of 20,000 tons of lithium iron phosphate (manganese) L(M)FP. Currently, the infrastructure construction has been completed, and the project is at the stage of equipment procurement and installation.

【Lithium Iron Phosphate: Rexis Delivers Mass-Produced High-Compaction LFP Products with Compaction Up to 2.6!】On September 9, 2024, Nantong Rexis New Materials Co., Ltd. successfully shipped the first batch of mass-produced new-generation ultra-high-compaction lithium iron phosphate (L(M)FP). L(M)FP Production Capacity: The annual production capacity of the Nantong base is 40,000 tons.

Gansu Elephant Energy's Lithium Iron Phosphate project in installation phase.

SMM February 22: With the rapid expansion of iron phosphate production capacity, the overcapacity situation in the industry is gradually intensifying, followed by a price decline, market competition is becoming more and more fierce, and it is increasingly difficult for iron phosphate companies to make profits, the price bottom line is constantly being tested...

SMM News on February 22nd: With the rapid expansion of iron phosphate production capacity, the situation of industry overcapacity is gradually worsening, leading to a decline in iron phosphate prices. The market competition is getting fiercer, and iron phosphate companies are finding it increasingly difficult to make a profit. The price bottom line is constantly being tested.