Since October 2021, public companies have announced a planned LFP capacity of nearly 1 million MT/year, far exceeding the actual capacity in 2020.

Leading LFP company Dynanonic announced that it intends to raise a total of up to RMB 3.2 billion for a 110 KMT/year new phosphate system cathode material production base project and supplemental working capital.

Lopal announced its majority-held subsidiary Changzhou Liyuan New Energy Technology and Stellar Investment of Indonesia will invest in the development and construction of an LFP cathode material project with a capacity of 100 KMT/year. The total investment of the project is about USD 235 million.

In 2021, Lopal announced several LFP-related expansion plans. In April, Changzhou Liyuan acquired 100% equity of both BTR (Tianjin) and BTR (Jiangsu). In August, Changzhou Liyuan intends to set up a joint venture with Yonfer to invest in a 50 KMT/year LFP capacity.

In 2022, LFP will still be in a tight supply-demand balance, and when excess capacity will occur will depend on the rhythm of supply-side capacity release. In addition, the construction cycle of LFP projects is generally 1 year to 1.5 years, and the new capacity from the investments mentioned may hit the market in 2022 and 2023.

Source: New Chemical Materials

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