~Statistics from China Industrial Association of Power Sources show the aggregate sales of lithium-ion battery of all types at 44 domestic lithium power battery enterprises reached 43.354 billion watt-hours in 2016, achieving 78.631 billion yuan in sales revenue, posting more than 100% increase year on year. Among them, lithium phosphate(LiFePO) batteries, ternary materials and multi-composites batteries, lithium manganese oxide(LMO) batteries, lithium titanate batteries recorded 27.797 billion watt-hours, 13.518 billion watt-hours, 1.195 billion watt-hours and 893 million watt-hours, accounting for 64.1%, 31.1%, 2.75% and 2% respectively.

Rapid growth of lithium battery has greatly boosted demand for battery materials. According to information compiled by ICC News, the full-year production output of cathode materials in the country reached 215,900 tons in 2016, an year-on-year increase of 30%. Among them, lithium iron phosphate(LiFePO) reached 73,900 tons, far exceeding market expectations; ternary materials also came to 65,000 tons. With rapid growth, these two types of materials have taken up nearly 70% of cathode materials production. Moreover, China's NEV production and sales are expected to reach 2 million units in 2020 according to the 13th Five Year Plan, which will then significantly increase demand for LiFePO and ternary materials.

However, entering 2017, the sudden shift in policies has made battery energy density a critical factor for new energy car subsidies. Given the relatively low level of energy density of LiFePO, it is generally held that LiFePo's market share would be partly taken by ternary materials as reflected by the actual production volume of all types of materials in the first half of the year. In the first quarter, overall rate of capacity utilization of LiFePo stands below 50%, while ternary material production nearly runs at full capacity. The fast change was not what everybody has expected. For cathode materials companies, how to lay out production plans and goals accordingly in face of rapidly changing market situation calls for prudent contemplation in the year to come.

Meanwhile, with energy density getting more and more emphasized, cathode material enterprises have all sped up research on new ternary materials. As the application of 622-type products takes place on large scale, 811, NCA and other types of products are heading towards this direction as well. In the meantime, LiFePO companies are actively looking to improve energy density through raising compaction density. As cathode materials are being attached to more and more importance, we sincerely invite you, experts and scholars from all fields and professionals from battery and materials companies, to participate in the Symposium on Lithium Battery Cathode Materials Industry Chain held in Changzhou. Through in-depth communications among the industry chain, we will jointly discuss the new technology of cathode materials as well as further development under new market environment.