In fact, as early as 2015, this development direction has begun to take shape. On the one hand, consumers' requirements for battery range are constantly improving, and the development of lithium iron phosphate capacity technology lags behind the market demand; On the other hand, lithium iron phosphate is not the mainstream in the international market. The major battery producers and consumers in Europe, America, Japan and South Korea do not do lithium iron phosphate. In the context of the global market, China will sooner or later be in line with the international standards.

In 2016, the Ministry of Industry and Information Technology "suspended the listing of ternary lithium passenger cars", which seems to have once again strengthened the confidence of lithium iron phosphate enterprises. After all, it seems that the lithium iron phosphate route can continue to receive policy support in a short time. However, time has changed. The new recommended directory in 2017 has improved the standard of battery energy density, which breaks the heart of this letter; Many enterprises feel that the wind direction is changing too fast.

The policy change depends on the market demand, and the market drive is rooted in the customer needs. The ternary battery with higher energy density is essentially the choice of consumers. The ternary lithium battery technology in China started late and its level is low. With the ternary battery becoming the mainstream of the market, the research and development progress of the ternary battery will continue to speed up. Compared with lithium iron phosphate, its advantages will continue to highlight. Therefore, enterprises focusing on lithium iron phosphate will be increasingly difficult in the market competition.

The disadvantages of lithium iron phosphate in the future market are mainly reflected in two aspects. First, the mainstream market tends to be saturated. According to data in 2016, electric buses in the passenger car market have accounted for nearly 90% of the market share. On the other hand, the application models of ternary batteries, new energy passenger vehicles accounted for 91.6% of the overall sales in the first quarter of 2017; Secondly, the maximum energy density that lithium iron phosphate can achieve in theory is 200wh/kg, while the Action Plan for Promoting the Development of Automotive Power Battery Industry jointly issued by four ministries and commissions, including the Ministry of Industry and Information Technology, requires that the specific energy of power battery should reach 300wh/kg by 2020 and 500wh/kg by 2025, which is obviously difficult to achieve for lithium iron phosphate.

According to the statistics of 58 battery enterprises in the Power Battery Application Branch of China Chemical and Physical Power Supply Industry Association, the reporter found that there were 8 enterprises focusing on the production of lithium iron phosphate, namely Shenzhen Watma, Beijing Guoneng, Jiangsu Tianpeng, Henan Xintaihang, Shilian Changyi Huai'an, Fujian Guancheng Ruimin, Zhejiang Jiabei and Shanghai Aerospace.