The development trend of lithium iron phosphate batteries.

Lithium iron phosphate batteries have the characteristics of long cycle life, high safety, good high-temperature performance, low price, low-temperature performance, and discharge reaching the level of lithium cobalt oxide, making them a promising power battery. In the next 5 years, they will mainly replace nickel cadmium batteries. In the next 10 years, they will become a strong competitor to lead-acid batteries. In the next 20 years, they may replace lead-acid batteries as the main starting power supply, UPS power supply, and backup power supply, Become a leader in secondary batteries.

Analysis of Advantages in the Lithium Iron Phosphate Battery Industry
1. The lithium iron phosphate industry is in line with government industrial policy guidance. The development of energy storage batteries and power batteries in various countries is placed at the national strategic level, with significant supporting funds and policy support. Currently, lithium iron phosphate batteries are receiving more attention.
2. LFP represents the direction of future battery development, and with the continuous development and maturity of technology, it may become a cheap power battery in the future.
3. In the past three years, the market capacity of positive electrode materials has exceeded expectations. In three years, the annual market capacity will exceed 10 billion yuan and show a growth trend. The battery market capacity will exceed 500 billion US dollars.
4. According to the development laws of the battery industry, the materials and battery industries have shown a stable growth trend, with little impact from national macroeconomic regulation. As a new type of battery, lithium iron phosphate has developed faster than the battery industry with the expansion of the market.
5. The profit margin is very high. With strong market support in the future, the industry can ensure this high profit margin in the long term.

6. We will not overly rely on foreign markets, and raw materials and equipment will not be constrained by foreign enterprises. The domestic industrial chain is relatively mature, but domestic enterprises have slightly lower understanding and control of equipment and processes than international leading enterprises.

Analysis of Disadvantages in the Lithium Iron Phosphate Battery Industry
1. At present, it is in the initial stage, and the major risk lies in technology. The bottleneck of technology is not limited to a single point, but involves the entire industry chain.
2. Cost issues. Although some lithium iron phosphate batteries have penetrated the market of electric tools, electric toys, mining lamps, UPS power supplies, electric bicycles, or other scooters, promotion is still very difficult. The main reason is that there is no competitive advantage in price, and nickel hydrogen batteries, nickel cadmium batteries, and lead-acid batteries still dominate the market.
3. The lithium iron phosphate industry is currently in a disorderly state, with unclear division of labor and poor connection between upstream and downstream.

4. The talent in the lithium iron phosphate industry is dispersed and cannot form a complementary mechanism. Lithium iron phosphate is a high-tech industry, and the success of projects depends not on individuals.

Guangzhou Battsys Co., Ltd (NEEQ:837375), was founded in 2006, which is a join-stock high-tech enterprise engaging in ODM and OEM , specially for customized and diverse research&production of lithium-ion battery，BATTSYS annual production capacity is tens of millions battery cells. The products are exported to dozens of countries & regions such as Europe, America & Asia etc.