Overcapacity

The massive expansion of LFP battery production in China has surpassed 3 million tons and is expected to reach 4 million tons in 2024. However, recent data (below) indicates a decline in LFP CAM production, with average capacity utilization falling below 50%.

This development poses significant challenges for LFP cathode manufacturers, who are now operating in an overcapacity scenario amidst a downturn in the market and reduced demand.