Recently, an SMM survey revealed the following about the iron phosphate market: (1) Due to strong downstream demand, iron phosphate companies have experienced delays in order deliveries, with some orders not being fulfilled on time, leading to prices remaining firm or slightly increasing. Meanwhile, some LFP companies have expanded their capacity, seeking outsourcing and other methods, which have driven up the operating rates of some small and medium-sized LFP companies. (2) During the October negotiation season in the fourth quarter, iron phosphate companies generally hold an optimistic view of the market and maintain a bullish stance; however, LFP companies tend to adopt a wait-and-see approach, expecting the market to remain stable.

【Lithium Iron Phosphate】Price Hike in Phosphoric Acid with Greater Impact on Sodium- and Iron-based Production Methods 1. The price of lithium iron phosphate (LFP) experienced a slight adjustment this week. Due to factors such as the rise in phosphate rock prices, the price of phosphoric acid has increased by approximately 200-300 yuan recently. Meanwhile, the price of ammonium dihydrogen phosphate (ADP) remained stable, thus having a significant impact on the production costs of sodium-based and iron-based LFPs. 2. Currently, the price of LFP is delineated at 10,000 yuan per ton, with transaction prices fluctuating by approximately 500 yuan up or down. Given the robust demand for lithium iron phosphate batteries recently, there is a substantial demand for LFP, leading to high operating rates among manufacturers. Both upstream and downstream parties need to make trade-offs in terms of pricing, shipment volumes, and product quality.

[SMM Analysis: Both Supply and Demand of LFP Cathodes Flourished in August, but Increasing Production Led to Difficulty in Boosting Revenue] This week, the price of lithium iron phosphate (LFP) was slightly adjusted. Recently, the price of phosphoric acid has risen by about 200-300 yuan due to factors such as the price of phosphate rock, while the price of ammonium dihydrogen phosphate has remained stable, thus having a greater impact on the cost of sodium-based and iron-based LFP...

[Ferrous Phosphate: Batian Phosphate Ferrous Project at the Stage of Sample Delivery and Parameter Adjustment] Batian Co., Ltd. (002170) issued a notice stating that the company held a performance briefing on May 22, 2024. Phosphate Rock: The 2 million tons of phosphate rock construction project is nearing completion, and the next stage will be trial production, acceptance, and formal production. In the first quarter, about 180,000 tons of phosphate rock were sold. Monoammonium Phosphate and Phosphoric Acid: The construction of industrial-grade monoammonium phosphate and purified phosphoric acid projects has been completed, and trial production is ongoing. Ferrous Phosphate: The ferrous phosphate product is currently undergoing product sampling and parameter adjustment based on specific products.

Guizhou Phosphate Rock Canyon Mine plans to produce 3.65 million tons of phosphate ore in 2024. The largest modern single open-pit phosphate mine in the country - Guizhou Phosphate Group's Canyon Mine, produced 3.61 million tons of phosphate ore in 2023, ranking first in national single open-pit phosphate mine production capacity. The planned production volume for 2024 is 3.65 million tons, with a production value of approximately 2.34 billion yuan in 2023, and estimated to reach 2.373 billion yuan in 2024. The mine follows national green mining construction standards, with a design mining loss rate of only 1.6% and an actual loss rate of 1.39%.

Guizhou Phosphoramidate New Energy Technology Co., Ltd. put into operation the first batch of 4 production lines on December 29, 2023, with an annual output of 10,000 tons of lithium hexafluorophosphate project. The next morning, the first batch of qualified products were loaded and shipped to downstream enterprises. Guizhou Phosphoramidate Group successfully extracted fluoride from phosphate rock with only 3% content, and developed anhydrous hydrofluoric acid through technological empowerment. This industrial innovation has opened up a new strategic pathway for accessing fluoride resources, as well as connecting to a wide downstream market. In recent years, the rapid development of the new energy vehicle industry has accelerated the overall demand for lithium hexafluorophosphate in the market. Lithium hexafluorophosphate, which is mainly made from anhydrous hydrofluoric acid, accounts for 40% of the total cost of the electrolyte in new energy batteries.