Overcapacity of lithium iron phosphate batteries

Despite the strong demand for lithium iron phosphate batteries, the problem of overcapacity still exists. It is expected that by 2023, the production capacity of lithium iron phosphate will reach nearly 3 million tons, while the market demand is about 1.5 million tons, and the capacity utilization rate is only about 50%. It is expected that by 2025, the production capacity of lithium iron phosphate cathode materials will reach 5 million tons, while the market demand may only be 3 million tons.