Supply Chain Strategy! China's Lifepo4 Battery Breaks Through Overseas.

In the wave of accelerated transformation of the global new energy vehicle industry, lifepo4 battery (lithium iron phosphate battery) is becoming the "key variable" in the overseas market with an unstoppable trend. With its high safety, long cycle life and low cost advantages, this battery technology, once regarded as a "characteristic of the Chinese market", has now gone global from the local market - not only has its share of domestic new energy vehicle installations exceeded 80%, but also in the first quarter of 2025, with a global power battery installation share of 51.5%, it surpassed ternary batteries for the first time in a single quarter, rewriting the global lithium battery competition landscape.

When Japanese and Korean companies tried to catch up with the Lifepo4 battery wave, they frequently encountered technical and industrialization barriers: Samsung SDI and General Motors planned to change the production line of the US joint venture to the "ternary + Lifepo4" dual route, but the mass production progress is still uncertain; Nissan's 5GWh Lifepo4 battery factory originally scheduled to be put into production in 2028 was cancelled in May this year due to technical and cost issues. On the other hand, Chinese companies, relying on their mature industrial chain and technological accumulation, are accelerating their seizure of overseas production capacity with the "local factory construction + technology licensing" model.

In Europe, in addition to Guoxuan High-tech and Envision Power, CATL also plans a 50GWh Lifepo4 battery factory in Spain with Stellantis; in North America, Yiwei Lithium Energy has built a Lifepo4 battery factory with an annual production capacity of 21GWh (focusing on commercial vehicles) with Cummins through the CLS model, which is expected to be shipped in 2026; Farasis Energy, Xinwanda, Ruipu Lanjun and other companies have also deployed production capacity in Southeast Asia and Europe. What is more noteworthy is that as the world's largest lithium iron phosphate battery manufacturer cluster, China's material companies are simultaneously building overseas supply chains. Leading manufacturers such as Hunan Yuneng, Defang Nano, and Wanrun New Energy have built factories in Europe, the United States, and Southeast Asia to export the fourth-generation (compacted density 2.6-2.7g/cm³) LifePO4 battery material technology, further strengthening the resilience of the industrial chain.

The technological evolution of lifepo4 battery is reshaping the global supply chain. At present, the industry's leading companies have achieved mass production of the fourth-generation lifepo4 battery materials (the secondary sintering process forms a technical "moat"), and the fifth-generation (compacted density above 2.7g/cm³) products have also entered the research and development stage. This technology-driven differentiation has led to the frequent termination of lifepo4 projects by cross-border companies (such as China National Nuclear Titanium Dioxide and Jinpu Titanium), while traditional leading companies (such as Hunan Yuneng and Defang Nano) have won large overseas orders one after another.

Looking to the future, the overseas new energy vehicle industry chain may show three major trends: First, lifepo4 battery will become a "key variable" in the overseas car market and even change the existing industrial structure; second, the global production capacity layout of China's lithium iron phosphate battery manufacturer can not only meet the needs of overseas customers for "localized production", but also avoid trade barriers; third, the overseas capacity expansion and technological leadership of Chinese material companies will build the core competitiveness of "China supply chain + global market".

From a local leader to a global rule maker, the story of China's lifepo4 battery has just entered its climax.

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