Hana Financial Investment predicted on the 9th that demand for LFP batteries for low-cost electric vehicles will continue to increase, and the size of global LFP will rise to 20-30% in the medium to long term.
The company maintained its "buy" opinion and raised its target price to 350,000 won from the previous 300,000 won.
Hana Financial Investment said, "The battery market size will be steeper than the electric car market.".
Over the next five years, the growth rate of the electric vehicle battery market is expected to be 21% based on Bear scenarios, 25% for Base scenarios, and 31% for Bull scenarios.
"The current LFP penetration rate by region is 37% in China, 2% in Europe and 0.2% in the U.S., which is virtually zero outside China," Hana Financial Investment said. "However, full-fledged market growth is expected outside China as LFP-related patents expire as of 2022.".
It is true that OEMs have a burden on increasing their dependence on Chinese battery makers, but given LFP's price competitiveness, demand for LFP batteries for low-cost electric vehicles is expected to continue to increase.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com