Lithium iron phosphate (LFP) prices have jumped this year, with a ~400 kg bag
trading above 25,000 yuan versus about 10,000 yuan a year ago. Demand remains
robust: finished-goods warehouses are full and more than 90% of output is
supplied to leading new-energy vehicle makers, which account for the bulk of
order growth. Producers point to strong NEV and energy-storage exports as the
main demand driver. Upstream costs are also pushing prices higher: LFP is made
from iron phosphate, lithium carbonate and glucose, with iron phosphate
representing roughly 30% of raw-material cost; iron phosphate has risen sharply
year-to-date, lifting overall LFP production costs.
