Report on China's LFP (LiFePO4) Industry,

A Guide to Your Business in China

MARKET REPORT

Report on China's LFP (LiFePO 4) Industry, 2009

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Description LiFePO4 battery has been the most-discussed subject in Li-ion battery field since 2007, because of the many accidents related to safety of Li-ion batteries, many times of recall of Li-ion batteries, global climate change and the soaring prices of oil have had greatly promoted electric-powered vehicles, and the highly safe LiFePO4 batteries naturally became the focus of attention. LiFePO4 is sold at US$30-60 per kg according to its quality. In China it is sold at RMB 140,000-180,000 a ton, with the gross profit margin of 60-70%. The market value of LiFePO4 was US$70m in China in 2008, and is expected to be RMB140m in 2010, with the CAGR of 44% during 2008 and 2010.

Figure: Size of China's LiFePO4 Market, 2006-2010

There is in China's LiFePO4 industry an investment boom that surpassed it in any other country. The boom can be indicated with the number of companies in the field - the US only has two of them, i.e. A123 and Valence; Canada only one, i.e. Phostech; Taiwan four, i.e. Changs Ascending, Potrans Electrical Corp., Advanced Lithium Electrochemistry and Tatung System Technologies Inc., while there are many more in China ?C data showed there were more than 40 LiFePO4 producers in China by Oct. 2008, and some of then had already put LiFePO4 into mass production, including Huaxin Energy Materials (Xinxiang), BYD (Shenzhen), BTR (Shenzhen), STL Energy Technology (Tianjin) and Pulead, Nanochem Systems (Suzhou), Xinxiang City Huaxin Energy Materials. Another eight companies also produce LiFePO4 in massive quality and are doing pilot selli ng. More others intend to get into the field.

Table: Comparison of China's Homegrown and Foreign Producers of LiFePO4 Enterprises

Valence Energy (Suzhou)

Status Quo

OEM, in production, with plans of expanding production, adopting production process of carbon thermal reduction

Valence Technology (Suzhou)

OEM, with plans of expanding production, adopting production process of carbon thermal reduction

A123 (Changzhou)

OEM, in production, with plans of expanding production; mainly for export; adopting ions to change the nature of materials, which was from Massachusetts Institute of

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Technology A123 (Zhenjiang)

OEM, in production, with plans of expanding production; mainly for export; adopting ions to change the nature of materials, which was from Massachusetts Institute of Technology

STL Energy Technology

Annual output of 500 tons; to expand to annually 2,000 tons in 2009 with

(Tianjin)

high-temperature sintering process for continuous production

Reshine New Material

Annual output of 3,000 tons; mainly for China's home market, collaborating with Central

(Hunan) Co., Ltd.

South University

Hunan Haorun Science And

Annual output hitting 1,000 tons in 2008

Technology Co., Ltd. Nanochem Systems (Suzhou)

Annual output of 500 tons; mainly for China's home market; adopting carbon thermal

Co., Ltd.

reduction process

Tianke (Henan)

Annual output of 500 tons; collaborating with Xiamen University in R&D

Likai (Taiwan)

Annual output of 500 tons; mainly for China's home market

Pulead

Annual output of 60 tons; mainly for China's home market; adopting High-temperature sintering process

Tiehu Energy (Xi'an)

Annual output of 200 tons; with its own technology

Beijing Lixianfeng S&T


Development Jieneng (Linyi)

Annual output of 200 tons

BTR (Shenzhen)


Huaxin Energy Materials


(Xinxiang) Qianyun (Qingdao)


Lizhiyuan Battery (Shanxi)


Hengdian Group DMEGC

Annual output of 15 tons, pilot production

Magnetic Limited Company Tongkun (Liaoning)

Pilot production; having obtained an investment of RMB2.4bn from Thunder Sky; in technological collaboration with Northeast Normal University

Hi-power New Energy Group

Pilot production with an investment of RMB300m; having purchased pusher-type

(Shandong)

sintering furnace

Shenzhen BYD Co., Ltd.

Pilot production; having purchased three different pieces of sintering equipment

Zhuoneng Battery Material


(Yantai) Ningbo Binbin Group Co., Ltd.

Pilot production

Jinhe New Material Co., Ltd.

Pilot production

Coslight Group (Harbin)

Pilot production, self sufficient

Great Power Battery Co., Ltd.

Daily output of 100 kg, with high-temperature solid-state synthetic process, and in collaboration with Tianjin Unversity

Changyuan Li-ion Technology

Producing for Home market

(Taiwan) Dongguan Shanshan Battery

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Materials Co., Ltd.

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Table of Contents Chapter One: Overview of LiFePO4 Batteries 1.1 General 1.2 Brief Introduction 1.3 Structure of LiFePO4 Batteries and Their Operational Principles 1.4 Key Properties of LiFePO4 Batteries 1.4.1 Typical Discharge Characteristics and Service Life 1.4.2 Experiment of Over-Discharging to Zero Voltage 1.5 Features of LiFePO4 Batteries 1.6 Application of LiFePO4 Batteries as Power Chapter Two: Overview of Global LiFePO4 Industry 2.1 The Industry in General 2.1.1 Developing Trend of Li-ion Cathode Materials 2.1.2 Current Situation of LiFePO4 Industry 2.2 Market Size 2.2.1 Market in General 2.2.2 Niche Markets 2.2.2.1 Nanometer Market 2.2.2.2 Micron Market 2.3 Upstream Markets 2.3.1 Supply of Li-Fe-P Oxide 2.3.2 Electrolyte for Li-ion Batteries 2.3.3 Diaphragm Materials for Li-ion Batteries 2.4 Downstream Market of Application 2.4.1 Overview 2.4.2 Telecoms Electronics 2.4.3 Mobile Phone 2.4.4 Digital Camera 2.4.5 Laptop 2.4.6 HEV 2.4.7 Electric-Powered Bicycles 2.4.8 Electric-Powered Carrier and Wheelchair 2.4.9 Electric-Powered Tool 2.4.10 Storage Battery for Solar LED Street Lamp 2.4.11 Other Fields of Applications 2.5 Competitive Landscape 2.5.1 General 2.5.2 Major Producers 2.5.2.1 Valence 2.5.2.2 A123 Systems 2.3.2.3 STL Energy Technology (Tianjin)

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2.6 Potential Customers 2.6.1 Japanese Brands 2.6.2 S Korean Brands 2.6.3 Chinese Brands 2.6.4 European and the US Brands 2.7 Market Price 2.8 Outlook 2.8.1 Developing Trend 2.8.1.1 Technology 2.8.1.2 Market 2.8.2 Forecast for Development 2.8.2.1 Production 2.8.2.2 Sales Chapter Three: Overview of China's LiFePO4 Industry 3.1 General 3.2 Level of Technology 3.2.1 Applied Technology of LiFePO4 3.2.2 Technological Advantage 3.2.3 Improvement of LFP 3.3 Gap between China's and Foreign Levels of Technology 3.4 Supply and Demand 3.5 Market Size 3.6 Competitive Landscape 3.7 Upstream Markets 3.7.1 Supply of Li-Fe-P Oxide 3.7.2 Market of Electrolyte for Li-ion Batteries 3.7.3 Market of Diaphragm Materials for Li-ion Batteries 3.8 Downstream Markets 3.8.1 Telecoms Electronics 3.8.2 Mobile Phones 3.8.3 Digital Camera 3.8.4 Laptop 3.8.5 HEV 3.8.6 Electric-Powered Bicycles 3.8.7 Electric-Powered Carrier and Wheelchair 3.8.8 Electric-Powered Tools 3.8.9 Storage Battery for Solar LED Street Lamp 3.9 Advantages and Disadvantages of Li-ion Battery Industry 3.9.1 Strength 3.9.1.1 Political Factors 3.9.1.2 Related Industries 3.9.2 Unfavorable Factors 3.9.3 Opportunities 3.9.4 Threats

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3.10 Revelations for LiFePO4 Industry Chapter Four: Major LiFePO4 Producers in China 4.1 Major LiFePO4 Producers in Mainland China 4.1.1 Pulead 4.1.2 STL Energy Technology (Tianjin) 4.1.3 Qianyun (Qingdao) 4.1.4 Lizhiyuan Battery (Shanxi) 4.1.5 Hengdian Group DMEGC Magnetic Limited Company 4.1.6 Hi-power New Energy Group (Shandong) 4.1.7 Reshine New Material (Hunan) Co., Ltd. 4.1.8 Shenzhen BYD Co., Ltd. 4.1.9 Jinhe New Material Co., Ltd. 4.1.10 Dongguan Shanshan Battery Materials Co., Ltd. 4.1.11 Great Power Battery Co., Ltd. 4.1.12 Huaxin Energy Materials (Xinxiang) 4.1.13 Nanochem Systems (Suzhou) Co., Ltd. 4.1.14 Valence Energy and Valence Technology 4.1.15 A123 (Zhenjiang) 4.1.16 A123 (Changzhou) 4.2 Major LiFePO4 Producers in Taiwan, China 4.2.1 Gold Peak Group 4.2.2 Simplo 4.2.3 Pihsiang Machinery Chapter Five: Outlook for of China's LiFePO4 Industry 5.1 Overview 5.2 Multinational Producers 5.3 China's Homegrown Producers 5.4 Competitive Trend - Operational Models of LiFePO4 Producers 5.5 Technological Trend - The Modification of LiFePO4 as a Cathode Material 5.6 Product Trend - Disadvantages of LiFePO4 Batteries and Measures for Improvement Chapter Six: Investing in China's LiFePO4 Industry 6.1 Investment Environment 6.2 Investment Potential 6.3 Risks of Investment

Selected Charts Size of Global LiFePO4 Market, 2006-2013 Size of Global LiFePO4 Market on Micron Level, 2006-2013 Structure of Global LiFePO4 Market by Sales Revenue, 2006-2013 Size of Potential Global LiFePO4 Market on Nanometer Level, 2006-2013 Sales of Global Li-ion Battery Market, 2001-2008

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Shipment Volume of Global Digital Camera Market, 2006-2010 Shipment Volume of Global Laptop Market, 2006-2010 Demand and Forecast for Laptop Li-ion Batteries in the World, 2007-2010 Output Value of Batteries for HEV (Hybrid Electric Vehicles) in the World, 2006-2010 Output Value of Batteries for Electric-Powered Bicycles in the World, 2006-2010 Output Value of Global GPS Equipment Market, 2006-2010 Output Value of Global Mobile Phone Market, 2006-2010 Shipment Volume of Global Mobile Phone Market, 2006-2010 Output Value of Batteries for Electric-Powered Vehicles and Electric-Powered Wheelchairs in the World, 2006-2010 Global Demand for Electric-Powered Handheld Tools, 2006-2010 Market Size of Batteries for Electric-Powered Handheld Tools in the World, 2006-2010 Output Value of Solar Batteries for LED in the World, 2008-2012 Change in Prices of LiFePO4 and Li-Ion Cathode Materials, 2006-2008 Production Capacity of LiFePO4 in the World, 2006-2010 Supply of and Demand for LiFePO4 in the World, 2006-2010 The Estimated Number of HEV (Hybrid Electric Vehicles) in the World Shipments of Electric-Powered Bicycles in the World Demand for Electric-Powered Vehicles and Electric-Powered Wheelchairs in the World Size of Global LED Street Lamps Market Patents of Rechargeable Li-Ion Batteries Held by A123 Systems A123's Collaborations Patents of Rechargeable Li-Ion Batteries Held by Phostech Patents of Rechargeable LiFePO4 Batteries Held by Hydro Quebec Major Customers of Valence, 2006-2008 Operation of Valence, 2004-2008

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Report on China's LFP (LiFePO4) Industry,

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