China’s Hubei Wanrun Launches LFP Battery Production Plant in Shandong

Hubei Wanrun

Hubei Wanrun, a prominent Chinese new energy firm, has officially launched a major production plant for lithium iron phosphate (LFP) and its feedstock iron phosphate in Binzhou city, located in Shandong province. The plant is a significant move to strengthen China’s position as a leading global supplier of materials critical for the electric vehicle (EV) and energy storage industries.

The new facility has a total nameplate capacity of 240,000 tons per year for LFP and an additional 240,000 tons per year for iron phosphate, with a total investment of 6.5 billion yuan (approximately $913 million). The initial phase of the plant has already launched, including 120,000 tons per year of LFP production capacity and the full 240,000 tons per year for iron phosphate. The remaining 120,000 tons per year of LFP capacity is still pending and has yet to be launched.

The project is a joint venture between Wanrun New Energy, a major Chinese producer of LFP cathode materials, holding an 80% stake, and Hubei, a multi-sector Chinese company with a 10% stake. Shenzhen Shijia Enterprise, a well-known export/import firm, holds the remaining 10% stake in the project.

Wanrun New Energy's Role in the Growing LFP Market

Wanrun New Energy has solidified its position as a key player in the global LFP market. In the first half of the year, the company shipped 78,000 tons of LFP, marking a 24% increase from the previous year. Additionally, Wanrun has plans to expand its global footprint with a new LFP production plant in South Carolina, USA, signaling the growing demand for LFP as a key material in the battery manufacturing sector.

In China, LFP batteries continue to dominate the market, making up a 75.6% share of the combined production for both power and energy storage batteries. This dominance is reflected in recent data from the China Automotive Battery Innovation Alliance, showing that LFP batteries accounted for 75.8% of newly installed volumes for power batteries during the period from January to September, totalling 734.4 GWh in production and 246.6 GWh in newly installed volumes.

LFP’s increasing share of the battery market, particularly for electric vehicles and energy storage systems, highlights the growing importance of materials like iron phosphate and lithium iron phosphate in the global energy transition. As demand for cleaner energy and EVs accelerates, the supply of high-quality LFP will become even more critical.