Since the fourth quarter of the previous year, every production line at Longpan Technology has been running at full throttle, boasting a capacity utilization rate that has surpassed 100%. A company executive mentioned that after securing numerous substantial long-term agreement orders for 2025, the current production capacity falls short of meeting customer requirements. Consequently, the company is hastening the execution of a fresh round of production expansion initiatives. On January 4th, Longpan Technology declared its intention to invest no more than 2 billion yuan in constructing a production base for high-compaction lithium iron phosphate, which will have an annual capacity of 240,000 tons. As we step into 2026, several publicly traded companies, such as Fulin Precision, Oriental Zirconium Industry, China Mineral Resources, and Capchem, have also unveiled investment plans for lithium battery projects, perpetuating the production expansion trend that commenced in 2025. Industry experts are of the opinion that, given the continually improving supply-demand dynamics, the investment fervor in the lithium battery sector is anticipated to endure in 2026. Simultaneously, it is crucial to bolster market oversight, streamline capacity management, back industry self-regulation, and foster regional coordination to avert haphazard construction and cutthroat competition, thereby fostering the industry's healthy and orderly progression.
