[Click eStock] "Cheonbo, the Biggest Beneficiary of Expanding Adoption Rate of LFP Batteries"

Yuanta Securities analyzed on the 6th that Cheonbo is the biggest beneficiary of the expanded adoption rate of LFP (Lithium Iron Phosphate) batteries.

Researcher Anna Lee of Yuanta Securities stated in a report on the same day, “Tesla is expected to focus on LFP, which can reduce battery costs, while utilizing both LFP and ternary cathode materials for next-generation vehicle manufacturing,” and “the adoption rate of LFP batteries by not only Tesla but also OEM automakers is expected to rapidly increase.”

Researcher Lee said, “The representative domestic beneficiary related to LFP batteries is Cheonbo, a company producing special lithium salts and additives applied at higher concentrations than ternary materials to improve ion conductivity of LFP batteries,” adding, “Among special electrolytes, F electrolyte has higher price competitiveness than Chinese companies, and P electrolyte is a monopolized product, so the benefit from LFP expansion will be significant.”

She continued, “In the second quarter of this year, mass production of 1000 tons of P electrolyte and in the fourth quarter, 4000 tons of F electrolyte will begin, and mass production of 6000 tons of additives VC/FEC is also scheduled for the third quarter,” forecasting, “Therefore, with production capacity expanding from 4700 tons last year to 17,000 tons this year, external growth will begin in earnest.”

She stated, “Cheonbo plans to rapidly expand its market share of F electrolyte mainly in China and Europe by leveraging higher price competitiveness than Chinese companies, which may cause some decline in profit margins, but it is still expected to maintain a high profit margin (around 17%) compared to other battery materials,” and added, “Starting this year, Cheonbo will apply a manufacturing method that reduces production costs by 30% through switching from expensive LiPF6 to cheaper raw materials, aiming to target the European and American markets and rapidly expand its global market share.”