Shenghua Boosts LFP Output with Major Investment
Jiangxi Shenghua New Material has started trial production at its new lithium-iron-phosphate (LFP) facility in Yichun, China. Built in two stages, the plant will produce up to 150,000 tonnes of LFP annually once fully operational. The first phase, funded by 1.5 billion yuan (approx. $214 million), includes six production lines. Full-scale operations are expected by mid-October, with the entire facility completed by the end of 2024.
CATL Partnership Secures LFP Supply Chain
Shenghua’s strategic partnership with CATL, China’s top battery manufacturer, is central to the plant’s development. CATL provided upfront funding, securing an annual supply of 140,000 tonnes of LFP from 2025 to 2027. This agreement strengthens China’s LFP supply chain and aligns both companies toward long-term energy storage goals.
LFP Dominates China’s Energy Storage Market
In the first half of 2024, Shenghua produced 47,000 tonnes of LFP, more than three times its output from the same period in 2023. The company produced 42,159 tonnes in all of 2023, showing rapid capacity expansion. Shenghua’s current production capacity now stands at 140,000 tonnes per year.
LFP batteries dominate the Chinese energy storage market. According to the China Automotive Battery Innovation Alliance, LFP accounted for 75% of battery production and 74% of installed volumes in August 2024.
Leave a Reply
You must be logged in to post a comment.