Cathode Material Market Grows Outside China... L&F Up 54% in First Half

SNE Research: "Non-China markets driving expansion"

LFP cathode materials account for 63.6% share

L&F and POSCO accelerating entry into LFP market

EcoPro begins mass production at Hungarian high-nickel plant

In the first half of this year, the global installed volume of cathode materials for electric vehicle (EV) batteries increased by 21.6% compared to the previous year. Markets excluding China grew by 32.2%, driving the overall market expansion. With Europe and non-China Asia regions leading the EV battery market, securing a supply chain independent of China is being highlighted as a critical factor.

According to SNE Research, a secondary battery market research company, the global installed volume of cathode materials for EVs reached 1,374 kilotons (Kton) from January to June of this year, up 21.6% from the same period last year. During the same period, the non-China market expanded to 411 kilotons, a 32.2% increase year-over-year.

SNE Research explained, "The trend of cathode material demand expanding from being China-centric to including non-China markets has become more pronounced."

By material type, lithium iron phosphate (LFP) installations increased by 29.4%, while ternary (NCM/NCA) rose by 10.1%.

LFP accounted for 63.6% of the total cathode materials, up 3.8 percentage points from 59.8% in the same period last year. LFP batteries have strengths in terms of cost, lifespan, and safety. By supplier, Hunan Yuneng retained the top position, followed by Wanrun, Lopal, Dynanomic, and Gotion.

SNE Research stated, "China-based suppliers maintained a dominant position in the LFP market thanks to their integrated value chains and large domestic demand. However, as rapid capacity expansion and price competition have started to impact profitability and quality, the Chinese government began, in April, to strengthen so-called 'internal competition' management, including an early warning system for production capacity, price stabilization, and payment period regulations."

Korean companies are also continuing to enter the LFP market. In March, L&F signed a mid-to-long-term supply contract for LFPs worth 1.6 trillion won with Samsung SDI. POSCO Future M began construction of a dedicated LFP plant in Pohang in May and is converting existing ternary lines to LFP production.

Ternary materials continued to see demand centered on premium and high-performance EVs, but their growth was limited. By supplier, Ronbay maintained its lead, followed by Leshine and L&F. Among Korean companies, L&F's installed volume increased by 53.8% from 26 kilotons to 40 kilotons, while EcoPro and POSCO Future M saw their volumes decline.

Although EcoPro's installed volume decreased, the company began mass production and the first shipment of high-nickel cathode materials with an annual capacity of 54 kilotons at its Hungarian plant in June.

SNE Research analyzed, "The key factor moving forward will be how quickly companies can secure production bases and product lines that comply with regional supply chain regulations. The gaps between companies are expected to widen further depending on capabilities in LFP and high-performance ternary technology, local procurement, and cost and quality management." In February, the United States announced 45X tax credit guidelines related to Prohibited Foreign Entities (PFEs), while in July, the EU launched a 1.5 billion-euro interest-free loan program to support domestic battery cell production.

This content was produced with the assistance of AI translation services.