LMFP CAM plant expansion accelerates as Hengchuang Nami commits 130,000 t/yr in China

NAMI

Hengchuang Nami will build a 130,000 t/yr LMFP CAM plant in Yinchuan, China. The LMFP CAM plant will be built in two phases inside the Yinchuan Economic Development Zone. The first phase targets 25,000 t/yr of LMFP output. The company has committed 4.8bn yuan to the LMFP CAM plant, but it has not shared a start-up date.

Hengchuang Nami has scaled LMFP output rapidly since it formed in February 2022. The company launched a 5,000 t/yr LMFP line at the end of 2022. Meanwhile, it began large-scale LMFP production in March 2023. It expanded capacity to 15,000 t/yr by the end of 2023. The company also started building a 30,000 t/yr LMFP CAM plant in Yancheng in 2024. That Yancheng project targets production by the end of 2026.

Why LMFP demand is rising across China’s battery supply chain

LMFP cathode materials raise energy density compared with standard LFP chemistry. As a result, cell makers can improve range without moving to high-nickel designs. However, LMFP chemistry often trades cycle life and power performance versus LFP. Battery makers will likely deploy LMFP in segments that value range and cost balance. Therefore, cathode producers are racing to qualify consistent LMFP performance at scale.

Chinese producers are also expanding competing LMFP and manganese-based capacity across regions. Large LFP suppliers are building LMFP lines to protect customer relationships. Meanwhile, newer entrants are using scale to compete on cost and delivery reliability. This expansion wave will intensify price competition in the next procurement cycle.

What a 130,000 t/yr build means for inputs and market competition

A larger LMFP CAM plant will tighten coordination across manganese, phosphate, iron, and lithium inputs. Producers will need stable precursor supply and strict impurity control to meet cell specifications. As a result, buyers will likely demand tighter quality documentation and faster sampling cycles. The Yinchuan project could also strengthen inland battery materials clusters with supportive logistics and energy availability.

The broader risk is simple and immediate. New nameplate capacity can outpace real consumption if EV and storage demand slows. However, scale leaders can still win by lowering unit costs and improving consistency. Therefore, execution speed and customer qualification will decide who captures long-term contracts.

The Metalnomist Commentary

This LMFP CAM plant signals a shift from pilot volumes to industrial competition. However, the market will punish inconsistent quality and weak cost control. The strongest producers will lock inputs and deliver stable electrochemical performance.