The losses in the lithium iron phosphate industry have eased

Prior to 2025, the lithium iron phosphate industry was largely loss-making, with only a few companies achieving profitability, due to multiple factors including structural overcapacity, aggressive price competition, fluctuating raw material costs, and structural contradictions within the industry. However, by 2025, most lithium iron phosphate companies had narrowed their losses and were accelerating their deployment of fourth-generation products.