As pivotal raw materials for new energy and energy storage batteries, iron phosphate and lithium iron phosphate have witnessed a relentless surge in prices this year, accompanied by unwavering market enthusiasm. According to CCTV Business, a pack of lithium iron phosphate, weighing approximately 400 kilograms, now fetches over 25,000 yuan, a stark contrast to its mere 10,000 yuan price tag a year ago. Despite this price doubling, market demand remains vigorous.

In the finished goods warehouse of a lithium iron phosphate manufacturing enterprise, newly installed shelves and the floor space alike are brimming with products. Over 90% of the lithium iron phosphate produced by this company is supplied to leading new energy vehicle manufacturers, which is the primary driver behind its substantial order increase. The company's leader remarked that the robust export demand for new energy vehicles and energy storage products has fueled the sustained growth in demand for lithium iron phosphate, emerging as a pivotal factor behind the price hike.

Moreover, the escalation in upstream raw material prices is also a critical factor propelling the increase in lithium iron phosphate costs. Lithium iron phosphate is predominantly produced by blending iron phosphate, lithium carbonate, and glucose, with iron phosphate constituting roughly 30% of the total raw material expenses. Since the onset of this year, the price of iron phosphate has skyrocketed, further inflating the production costs of lithium iron phosphate.