Output of LFP Battery Exceeds That of Ternary Lithium Battery in May

| Jerry Huang

According to data from the China Automotive Power Battery Industry Innovation Alliance, in May 2021, China's power battery output totaled 13.8GWh, a year-on-year increase of 165.8%. Among them, the output of lithium iron phosphate (LFP) batteries was 8.8GWh in May, accounting for 63.6% of all battery output, an increase of 317.3% year-on-year, and an increase of 41.6% month-on-month; the output of ternary lithium batteries was 5.0GWh, accounting for 36.2% of the total output, an increase of 62.9% year-on-year, but a 25.4% decrease from the previous month. Due to the surge in May this year, the output of LFP batteries has surpassed that of ternary lithium batteries for the first time since 2018. The cumulative output of LFP battery was 29.9GWh from January to May this year, accounting for 50.3% of the total output; while the cumulative output of ternary lithium batteries was 29.5GWh at the same period, accounting for 49.6%.

In terms of battery capacity installed by EV industry, share of LFP batteries is temporarily less than ternary lithium batteries still. In May, the installation capacity of LFP batteries increased by 458.6% year-on-year to 4.5 GWh, and the installed capacity of ternary batteries increased by 95.3% year-on-year to 5.2 GWh. In the first five months of this year, China’s installation of power battery capacity totaled 41.4GWh in EV, a year-on-year increase of 223.9%. Among them, the cumulative volume of ternary lithium batteries was 24.2GWh, an increase of 151.7% year-on-year, accounting for 58.5% of the total batteries installed; the cumulative volume of LFP batteries was 17.1GWh, an increase of 456.6% year-on-year, accounting for 41.3% of the total batteries installed. However, it is worth noting that the current growth rate of LFP batteries in production and EV installation far exceeds that of ternary lithium batteries. If this continues, the EV installation of LFP batteries in June may exceed that of ternary lithium batteries as well.