Hunan Yuneng Breaks LFP Production Record in 2024 Amid Soaring Global Demand

Hunan Yuneng

Surging NEV and Energy Storage Markets Drive Output Growth Despite Falling Prices

LFP Output Hits All-Time High in 2024

Hunan Yuneng New Energy Battery Material, China's largest lithium iron phosphate (LFP) material producer, reported record output in 2024. The company produced 735,462 tonnes of LFP, a 46% year-on-year increase, amid surging demand from new energy vehicles (NEVs) and energy storage markets.

Despite a 101% capacity utilization rate, Yuneng’s sales also saw strong growth, reaching 710,565 tonnes, up by 40% from 2023. Notably, 41% of its output supported the fast-growing energy storage segment, reflecting China's pivot toward green energy infrastructure.

Profit Declines on Price Pressures

While production surged, Yuneng’s financial performance declined. Operating income dropped 45% to 22.6 billion yuan ($3.1 billion), and net profit fell by 62% to 594 million yuan. The primary cause was a sustained decline in LFP prices, which affected margins across the sector.

Nevertheless, Yuneng is continuing its expansion efforts. The firm announced plans in 2024 to build a 50,000 t/yr LFP plant in Spain, marking its first overseas venture. This move targets rising European demand for LFP cathodes, particularly from automakers transitioning to LFP-based battery chemistries.

LFP Remains Dominant in China’s Battery Mix

According to China Automotive Battery Innovation Alliance (Cabir), China produced 1,096.8GWh of power and energy storage batteries in 2024. LFP batteries dominated, accounting for 74.4% of the total. Hunan Yuneng’s strong supply ties with CATL, BYD, and other major LFP battery makers have further solidified its leading role in the sector.

As global automakers and energy firms adopt LFP batteries for their cost, safety, and longevity advantages, Yuneng appears well-positioned to expand its global influence despite temporary market headwinds.