On November 18, the Lithium Iron Phosphate Cathode Material Industry Cost Research seminar was held in Beijing. Tang Yan, Deputy Secretary-General of the China Industrial Association of Power Sources, stated that the lithium-ion battery industry is currently facing the most severe "internal competition" challenge in its history. The lithium iron phosphate (LFP) cathode material sector has become the most fiercely competitive segment of the lithium-ion battery industry chain, bearing the heaviest profit pressure. In response, Tang Yan, on behalf of the industry association, proposed three initiatives for industry collaboration:
First, the association will collaborate with leading companies to establish a cost accounting system covering raw materials, production, logistics, and all other aspects of the network. This will provide transparent value references for companies, curb unhealthy competition below cost levels, and offer data support for government supervision, enabling more precise and efficient policy regulation.
Second, the association will continue to promote breakthroughs in cutting-edge technologies, driving the industry to transition from scale-based competition to quality-based competition.
Third, it will emphasize supply-demand balance as a key point to build a collaborative development ecosystem. This involves establishing a production capacity early warning mechanism, promoting long-term strategic cooperation between material companies and downstream leaders, guiding the orderly release of production capacity, and avoiding the issue where demand grows without a corresponding increase in profits.
Written by Aggie Hu, huchenying@mysteel.com
