Million-ton capacity comes online! Wanhua Chemical makes a strong entry into the first tier of the lithium iron phosphate industry.

Wanhua Chemical disclosed at its latest performance briefing that the company's lithium iron phosphate (LFP) capacity expansion rhythm has been fully accelerated. Currently, the 100,000-ton project in Meishan, Sichuan, and the first phase of the 100,000-ton project in Haiyang have both been successfully put into operation. Meanwhile, new projects including the second and third phases in Haiyang (200,000 tons/year each) and the first phase in Laizhou (320,000 tons/year) have started construction simultaneously, with an expected total new capacity of 820,000 tons in 2026.

Combined with existing operational capacity, Wanhua Chemical's total LFP capacity is expected to exceed the one-million-ton mark within the year, directly placing it in the first tier of the industry.

Comparing data with leading industry enterprises, effective capacity of mainstream companies in 2025 is concentrated in the 400,000 to 1 million ton range. An annual new capacity addition of 820,000 tons is equivalent to creating another industry leader and will significantly reshape the current competitive landscape of lithium iron phosphate.

Sustained explosive downstream demand is the core support for this round of expansion. Currently, the continued surge in new energy vehicles and rapid growth in the energy storage industry have driven a substantial increase in LFP orders. Demand for high-performance power products increased by 30% year-on-year, while demand for energy storage products grew by over 50%. Overall industry inventory is at a low level, and market prosperity continues to rise.

On the technical front, Wanhua continues to iterate and upgrade. The fourth-generation LFP has achieved mass production, and the fifth-generation product has completed finalization and its debut. According to the plan, the company is expected to build an integrated capacity matrix of 1 million tons of lithium iron phosphate and 1 million tons of LFP by 2027.

Industry analysis indicates that relying on integrated raw material advantages, technological iteration capabilities, and the implementation of ultra-large capacity, Wanhua Chemical will become a heavyweight dark horse in the lithium battery cathode track, accelerating industry consolidation and reshaping the competitive landscape of the lithium iron phosphate market.