In 2024, the fast growing of lithium iron phosphate in the international market brings new growth opportunities to domestic lithium battery companies, especially driven by the demand for energy storage batteries in Europe and the United States. Orders for lithium iron phosphate batteries in the power storage field have increased significantly.Besides, the export volume of lithium iron phosphate materials has also increased significantly year-on-year.
According to statistical data, from January to August 2024, domestic exports of lithium iron phosphate power batteries reached 30.7GWh, accounting for 38% of total domestic power battery exports. At the same time, the latest data from the General Administration of Customs shows that China’s export volume of lithium iron phosphate in August 2024 was 262 tons, a month-on-month increase of 60% and a year-on-year increase of 194%. This is the first time since 2017 that export volume has exceeded 200 tons.
From the perspective of export market, the export of lithium iron phosphate has covered Asia, Europe, North America and South America and other regions. Orders for lithium iron phosphate surged. In the downward cycle of the lithium battery industry, domestic battery companies have frequently received large orders by virtue of their advantages in the field of lithium iron phosphate, becoming an important force in promoting the recovery of the industry.
In September, the industry sentiment remained good, mainly due to the growth in overseas energy storage demand. Demand for energy storage exploded in Europe and emerging markets, and large orders were signed intensively in the third quarter.
In overseas markets, Europe is one of the regions with the strongest demand for electrification transformation after China. Since 2024, demand for lithium iron phosphate batteries in Europe has begun to grow rapidly.
In June this year, ACC announced that it would abandon the traditional ternary battery route and switch to lower-cost lithium iron phosphate batteries. From the overall plan, Europe's total battery demand (including power battery and energy storage battery) is expected to reach 1.5TWh by 2030, of which about half, or more than 750GWh, will use lithium iron phosphate batteries.
According to estimates, by 2030, global demand for power batteries will exceed 3,500 GWh, and demand for energy storage batteries will reach 1,200 GWh. In the field of power batteries, lithium iron phosphate is expected to occupy 45% of the market share, with demand exceeding 1,500GWh. Considering that it already occupies 85% of the market share in the energy storage field, the demand for lithium iron phosphate batteries will only continue to grow in the future.
In terms of material demand, it is conservatively estimated that the market demand for lithium iron phosphate materials will exceed 2 million tons by 2025. Combined with power, energy storage, and other applications such as ships and electric aircraft, the annual demand for lithium iron phosphate materials is expected to exceed 10 million tons by 2030.
In addition, it is expected that from 2024 to 2026, the growth rate of overseas lithium iron phosphate batteries will be higher than the growth rate of global power battery demand during the same period.
Post time: Oct-26-2024