China's LMFP Battery Plant Boosts Cathode Material Market

Battery LFP

China’s LMFP battery materials sector takes a leap forward with Shanxi Tewashi’s 100,000 t/yr plant launch.

China’s Shanxi Tewashi Energy has officially started production at its new 100,000 t/yr lithium ferro-manganese phosphate (LMFP) cathode material plant. Located in Changzhi city, the facility is equipped with 16 fully automated production lines and marks a major investment in next-generation lithium-ion battery technology. The company, formed in late 2023, is a joint venture between Qianyun High-tech Energy and state-owned Shanxi Changgao Zhihui Group.

This launch further underscores China’s strategic focus on expanding domestic LMFP output. LMFP cathode materials offer higher energy density and lower costs compared to traditional lithium iron phosphate (LFP), making them attractive for electric vehicles. However, market analysts note that LMFP’s shorter cycle life and reduced discharge performance remain challenges for widespread adoption. Nevertheless, Chinese firms are doubling down on development. Major players like Hunan Yuneng and Ningbo Ronbay are building large-scale LMFP facilities to capture future market share.

The push into LMFP reflects China’s evolving battery supply chain strategy. As battery manufacturers aim to improve performance and reduce reliance on critical raw materials like nickel and cobalt, LMFP offers a viable alternative. With new LMFP projects launching across Shanxi, Hubei, and Gansu provinces, China is positioning itself as the global leader in diversified cathode active materials. The ramp-up of LMFP output may also influence global pricing dynamics for both LFP and emerging sodium-ion chemistries.

The Metalnomist Commentary

China's aggressive expansion of LMFP cathode production signals a pivot toward alternative battery chemistries. As the global EV sector seeks higher energy density at lower cost, Chinese manufacturers are racing to commercialize LMFP at scale—potentially reshaping the future of EV battery composition.