Chinese lithium-ion battery material producer Shenzhen Dynanonic is building a 150,000 t/yr lithium-iron-phosphate (LFP) battery material facility in Qujing city in southwest China's Yunnan province.

The 2.9bn yuan ($441mn) project comprises a 100,000 t/yr joint venture operated by Dynanonic and EVE Energy, which was announced in March, and a separate 50,000 t/yr facility run by Dynanonic.

Other details such as construction schedule and launch date were undisclosed.

LFP battery applications have been increasingly driven by the trend for cobalt-free products in recent years, prompting rapid growth in the LFP battery market because of its higher safety performance and lower manufacturing costs.

China's volume of newly-installed LFP batteries was 5.5GWh in January-February, up almost sevenfold from a year earlier.

Argus assessed the range for 99.5pc grade lithium carbonate, the main feedstock for LFP batteries, at Yn85,000-90,000/t ex-works today, unchanged from 30 March. Sellers held their offer prices at around Yn90,000/t, amid expectations of the rapid long-term development of the power battery sector, especially lithium-iron-phosphate batteries.