Energy Storage Will Be An Important Potential Market For Lithium Iron Phosphate

- Oct 10, 2017-

China energy storage network: compared with the much-touted three-yuan battery in late November 2016, the iron phosphate battery is a bit neglected.

New energy car subsidy policy for the tendency of high energy density, as well as much starker choices-and graver consequences-in planning "in 2020, the national goals to achieve power battery energy density of 350 wh/kg" makes many enterprises to focus on three yuan, thus there are industry insiders predict, three yuan is expected to become the future direction of power battery material, ternary battery will usher in explosive growth.

However, the PK between the iron phosphate and the triples is not conclusive.

Analysts pointed out that the three - yuan battery is the future development direction of power battery, but the price advantage of the iron phosphate battery is gradually highlighted by the sharp increase in the cost of the three - yuan battery.

Currently on the energy density of lithium iron phosphate still has room to improve, passenger car market is three yuan for the replacement of the lithium iron phosphate is not in the short term, the future energy storage will be lithium iron phosphate important potential market.

As a result, the prospects for lithium iron phosphate remain bright.

1. Lithium iron phosphate still has room for improvement in energy density

The energy density of the new energy vehicle subsidy policy is that "the mass energy density of the power battery system of pure electric passenger vehicles is no less than 90Wh/kg, and is subsidized by 1.1 times greater than 120Wh/kg."

The energy density of the battery system of non - quick - filled electric buses is higher than 85Wh/kg.

The energy density of the power battery system is not less than 90Wh/kg.

This is a high threshold for lithium iron phosphate, which is the lowest energy density in the phosphate system.

Lithium iron phosphate battery systems on the market at present level of energy density about 70 wh/kg - 80 wh/kg, but if you put the battery in the core of the anode material content increased to more than 30%, so it will greatly improve the energy density.

In the case of lithium - rich system, the energy density of single battery can reach up to 300Wh/kg, which can reach the standard of 120Wh/kg.

From this perspective, there is still room for improvement in the performance of lithium iron phosphate materials, and there is still a prospect in the bus and mid-end passenger car market.

2. The cost of the three - yuan battery increases the price advantage of lithium iron phosphate

Since late October 2016, copper foil, aluminum foil, electrolytic nickel, cobalt electrolysis, electrolytic manganese, lithium carbonate and other raw materials prices period is entered into, the cobalt price quotation from October 210000 yuan/tons up to 420000 yuan/ton, up 100%, electrolytic cobalt rise as high as 42%, cobalt acid lithium increases up to 34%.

On the one hand, the increase in raw material price stimulates the price of third-yuan materials, which makes the battery enterprises have to slow down the rhythm of the three-yuan battery layout.

Ternary battery demand explosive growth, on the other hand, will stimulate the demand of the material such as cobalt, nickel, cobalt, nickel and other material supply and demand situation has dramatically reversed and cobalt gap between supply and demand in 2017 will reach about 4500 tons.

Ternary battery costs increase battery prices are bound to make three yuan, and due to the price is cheap, phosphorus, iron, lithium iron phosphate price advantage will be highlighted, as a result, even in the first quarter of 2017 encounter cold, but in the second quarter is expected to lithium iron phosphate material market will officially open, and three yuan in the passenger car market to the replacement of the lithium iron phosphate will not show it in a short time.

3. Energy storage will be an important potential market for lithium iron phosphate

As the frontier technology and strategic emerging industries that affect the energy future of the future, as the policy becomes clear, energy storage has entered a critical period of industrial development.

As application domain gradually open the market to accelerate expansion, in the next ten years in the capacity of the storage market in China will exceed 600 billion yuan, in 2020, the cumulative installed size of energy storage market in China will be more than 50 gigawatts (gw), energy storage investment construction scale will reach 230 billion yuan.

Lithium iron phosphate as long life, the use of safe, large capacity, and the advantages of green environmental protection, shift to energy storage field will extend the value chain, will be conducive to the new business model, and construct a new industry chain.

In addition, the energy storage market is larger than the electric vehicle market, and will become an important potential market for lithium iron phosphate.