In April 2026, the domestic lithium iron phosphate market exhibited a trend characterized by ‘volatility at high levels, an upward shift in the price centre, and structural divergence’.

At the beginning of the month, supported by firm upstream lithium prices and surging demand from downstream energy storage and power battery sectors, prices continued their upward trajectory; in the middle of the month, slight fluctuations in raw material prices led the market to enter a period of cautious adjustment; towards the end of the month, as downstream orders continued to be released and high-end production capacity remained tight, prices strengthened once again, reaching a new high for the year overall, with the industry exhibiting a structural pattern of “shortages at the high end and oversupply at the low end”.

I. Comparison of Customs Import and Export Data (January–March 2026)

According to data from the General Administration of Customs and industry sources, exports along the lithium iron phosphate supply chain exhibited the characteristics of “a surge in cathode materials and high growth in lithium salt imports”, with global competitiveness continuing to stand out:

Lithium iron phosphate cathodes: Cumulative exports from January to March reached 20,000 tons, compared to 3,200 tons in the same period of 2025, representing a year-on-year increase of 520%; exports for March alone stood at 8,900 tons, with a concentrated release of overseas energy storage and power battery orders driving export volumes to a record high.

LFP batteries: Cumulative exports from January to March reached 26.4 GWh, an increase of 81.2% year-on-year, accounting for 46.5% of total power battery exports, with the explosive growth in overseas energy storage market demand serving as the core driver.

II. April Production Capacity and Supply Landscape

In April, domestic lithium iron phosphate production capacity continued to expand, characterized by high operating rates, steady output growth and a significant shortage of high-end capacity. Monthly domestic lithium iron phosphate output reached 478,200 tons, a month-on-month increase of 6.6%, with the industry’s operating rate remaining above 85% and leading enterprises operating at full capacity.

The supply side showed marked divergence:

High-end capacity: Capacity utilization for products with high packing density (≥2.5 g/cm³) and long cycle life exceeded 95%, with orders scheduled through to 2027, and supply remaining tight.

Low-end capacity: There is overcapacity for standard-specification products, with operating rates below 60%. Market competition is fierce, and prices are under significant pressure.

Inventory levels: Industry inventory stands at approximately 17,500 tons, a year-on-year decrease of 45.3%. Inventory turnover days are less than 15 days, with overall levels remaining low.

III. Price Trends and Fluctuations 

Lithium iron phosphate prices continued to strengthen in April, with high-end products seeing significant increases and the price gap between high and low-end products widening:

Price: 61,500 RMB/ton on 30 April, up 13.47% from 54,200 RMB/ton at the beginning of the month, with the maximum monthly increase reaching 15.3%.

Energy storage-grade lithium iron phosphate: Mainstream quotations ranged from 57,000 to 59,500 RMB/ton, with a monthly increase of 10%–12%. Prices remained firm due to robust support from energy storage orders.

Volatility characteristics: Prices rose steadily in the first half of the month, fluctuated within a narrow range in the middle of the month, and accelerated upwards in the latter half, presenting an overall “step-like rise” trend. The amplitude of fluctuations was significantly greater than in the first quarter.

IV. Logic Behind Upstream and Downstream Price Movements

Upstream lithium carbonate: Battery-grade lithium carbonate prices fluctuated at high levels in April, with the benchmark price at the end of the month standing at 175,000 RMB/ton, representing a monthly increase of 8.7%. Domestic lithium mine maintenance, tight overseas supply and robust demand have kept lithium prices firm, providing strong cost support for lithium iron phosphate.

Lithium Iron Phosphate: The core drivers are strong cost support, robust demand and tight supply in the high-end segment. Shipments of energy storage batteries rose by 139% year-on-year, whilst demand for power batteries has been steadily increasing, with order books fully booked; slow expansion of high-end production capacity has led to a supply shortage, pushing up prices; conversely, overcapacity in the low-end segment has limited price increases, intensifying market polarization.

V. Outlook

With cost support persisting, the peak demand season unfolding, and tight high-end supply, LFP prices are likely to remain at elevated levels, fluctuating within a narrow range with a slight upward trend.

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