The lithium iron phosphate (LFP) industry is experiencing a concentrated wave of price increases, with leading manufacturers issuing clear price hike notices to customers. One major producer has confirmed a unified increase in LFP product processing fees starting in 2026. Industry sources reveal that some price adjustments have already been implemented, while other firms are in active negotiations, acknowledging that price hikes are inevitable—a move expected to restore profit margins.
According to reports, the U.S. Department of Defense is stockpiling critical minerals, including lithium, cobalt, graphite, and rare earth elements, under the National Defense Stockpile Program, highlighting their strategic importance in energy transition.
China’s automotive power battery sector reported robust growth in November 2025, with total installations reaching 93.5 GWh, up 11.2% month-on-month and 39.2% year-on-year. LFP batteries dominated, accounting for 80.5% (75.3 GWh), while ternary batteries made up 19.4% (18.2 GWh). Cumulative January-November installations hit 671.5 GWh, with LFP batteries surging 56.7% year-on-year.
December 2025 lithium battery production forecasts show strong demand, with battery output at 143.3 GWh (+2.3% MoM), marking the first December increase since 2022. Energy storage deployments are peaking in Q4, and Europe’s NEV sales remain robust.
At the 2025 China International Lithium Industry Conference, Tianqi Lithium’s (09696) Chairman Jiang Anqi projected global lithium demand to reach 2 million metric tons of lithium carbonate equivalent (LCE) by 2026, driven by renewable energy grid integration and commercial EV adoption. Ganfeng Lithium’s (01772) Chairman Li Liangbin anticipates 30% demand growth, potentially pushing prices beyond CNY 150,000/ton if demand spikes.
CITIC Securities highlights investment opportunities in high-self-sufficiency lithium resources and low-cost producers, emphasizing stability amid reduced price volatility. Zhongtai Securities notes improved supply-demand dynamics for lithium carbonate, with upside potential in equities.
**Key HK-listed players**: - **Tianqi Lithium (09696)**: Holds 600 tons of lithium metal capacity, ranking second globally, with 1,000 tons under construction. - **Ganfeng Lithium (01772)**: Achieved mass production of energy storage cells and is advancing solid-state battery applications in EVs and drones. - **CATL (03750)**: Leads in solid-state battery tech, with semi-solid "condensed" batteries (400 Wh/kg) already deployed and sulfide-based prototypes exceeding 500 Wh/kg. - **REPT BATTERO (00666)**: Spearheads R&D for high-energy-density solid-state batteries (targeting 400+ Wh/kg) under Zhejiang’s tech initiative.
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