During the 2026 National Day holiday, China's lithium iron phosphate (LFP) industry continued to operate with strong momentum. Most producers maintained full-capacity operations, with active performance on both the supply and demand sides.
LFP prices held steady, with power-type LFP priced at Yuan 50,500/tonne and energy-storage-type LFP at Yuan 49,000/tonne. Currently, lithium carbonate spot prices are already near their year-to-date lows. Lithium salt producers are mainly maintaining long-term agreement supply, showing low willingness to sell on the spot market and a relatively strong intention to hold prices firm. In the distribution segment, after pre-holiday destocking, traders' tradable inventories remain at low levels, leaving limited room for operations. In the near term, they are mainly taking a wait-and-see stance. On the iron phosphate side, some transactions at new prices had already begun before the holiday. After the holiday, overall orders are expected to be largely finalized, with an overall price increase of around 2%. Iron phosphate prices are expected to maintain an upward trend due to tight supply, but the pace of increase is gradually slowing.
Production remains at a high level. LFP output in October 2026 is expected to rise to 625,000 tonnes, up 3.61% MoM. Capacity in Sichuan, Inner Mongolia, Hubei and other regions continues to ramp up, but some procuders have slowed the pace of capacity commissioning and ramp-up due to production line debugging, feedstock supply constraints, and profitability pressure. Meanwhile, the scale of tolling orders in the market has increased.
Structural highlights on the demand side are prominent. In the power battery segment, the continued volume ramp-up of second-generation blade batteries is driving growth in cell production schedules, while energy storage demand remains robust. High-compaction LFP products remain in short supply, and the industry boom is expected to continue into 2027.
Overall, during the National Day holiday, the LFP industry operated steadily, with the booming energy storage sector and the structural shortage of high-end products providing core support. Prices may remain weak after the holiday, but demand-side growth momentum remains ample.
Edited by Cassie Li, lixiangying@mysteel.com
