2026 China Lithium Battery Industry: High-Compaction LFP Capacity Expansion Wave Led by Wanrun New Energy & Longpan Technology

At the start of 2026, domestic lithium battery cathode material enterprises have set off a wave of capacity expansion for high-compaction density lithium iron phosphate.

Wanrun New Energy (announced on January 16, 2026): Plans to construct a 70,000-ton/year high-compaction density lithium iron phosphate project in Hubei Province. Prior to this, it has upgraded the 120,000-ton/year lithium iron phosphate production line of Lubei Wanrun to produce high-compaction products. In May 2025, the company signed a long-term supply agreement with CATL, committing to a cumulative supply of approximately 1.3231 million tons from 2025 to 2030, and is advancing product iteration and mass production introduction simultaneously.

Longpan Technology (announced on January 4, 2026): Will build a 240,000-ton/year high-compaction lithium iron phosphate production base with a total investment of no more than 2 billion yuan. Its capacity utilization rate has exceeded 100% since the fourth quarter of 2025, yet it still cannot meet customer delivery demands. The company has also raised the capacity of the third-phase project in Suining, Sichuan to 100,000 tons/year.

Industry Background: Lithium iron phosphate has become the mainstream choice for power battery installation. High-compaction technology can significantly improve energy density and cycle life while ensuring safety, making it the core selection for automobile and battery manufacturers. The explosive growth of downstream demand has led to a structural shortage of high-quality production capacity, and leading enterprises are prioritizing the locking of long-term supply agreements.