Industry News, Market Trends

Lithium battery price surged 15%! The price increasing will be lasting to 2023!

battery material

Recently, according to CCTV Finance and Economics Report, because the new energy vehicle and lithium battery market continues to be hot, lithium battery upstream raw material price climbs quickly. Lithium-ion batteries will go up again, by 5% to 15% , and the surge in battery prices may continue to 2023.

Cathode materials are the most critical raw materials for lithium batteries, including lithium carbonate and lithium hydroxide. At present, lithium carbonate, lithium hydroxide, electrolytes, and so on are rising in varying degrees, some raw materials compared to the beginning of this year has risen more than 200% .

The newly produced white powder is lithium carbonate used as a cathode material for lithium batteries at a lithium carbonate factory in Yichun, China. Responsible Person told reporters that they produced battery-grade lithium carbonate, the current annual production capacity of about 10,000 tons, this year has been in the state of overload production.

The price of lithium carbonate products has continued to rise. In recent days, the price has changed almost every day. At present, the price has approached 30,000 USD per ton, which has increased by more than 50% in the past month, that’s up 233% from the 8,900 USD a ton at the start of the year. The price of the lithium carbonate platform will rise by about 480 USD per ton every day.

“Rare Commodity”has become the current status of raw material procurement for lithium battery enterprises. Many of the raw material producers have already booked orders for next year.

A marketing manager at a lithium carbonate and lithium hydroxide factory in Jiangxi province told reporters that he was receiving at least 60 to 70 calls a day for supplies. But most of the time can not meet customer demand for goods, orders may be more than several times the capacity.

So far this year, the prices of other key raw materials for lithium batteries, in addition to lithium carbonate, have risen sharply. The price of lithium carbonate rose 260% to 30,000 USD per ton from 8,300 USD per ton, while the price of lithium hydroxide rose 260% from 7795 USD per tons to 28,600 USD per tons, the price of lithium hexafluorophosphate rose 355% from 17,000 tons to 78,000 tons, and yellow phosphorus and phosphoric acid, which are necessary for the production of lithium iron phosphate batteries, rose as much as 280% this year. The current price of NCM conventional power electrolyte is 19,000 USD per ton, up more than 14% in the past month and up 150% from 7600 USD at the beginning of the year. Nickel, cobalt, manganese and other rare precious metals prices are also rising, presenting the situation of demand exceeds supply. Each lithium electricity raw material all has the different degree big markup.

Metal Plate, wire,BMS and other core components are also affected by rising costs and capacity decline, some factories have begun the price increases.

In addition to a further rise in raw materials, it also faces a nationwide electrical power shortage. The switch-off and power-limiting have a great impact on battery factories. Core battery manufacturing clusters in Guangdong, Zhejiang, Anhui, Jiangsu, Jiangxi have all been affected by the power-limiting and production capacity has been seriously reduced, and the overall production capacity of new batteries has declined, this has contributed to the ongoing rise in the price of new batteries.

Since October,2021, many lithium-ion battery manufacturers have been rising up prices. October 13, Penghui energy sent a price increase letter, decided that all new orders will be implemented bulk linkage pricing, increase depending on the proportion of products and materials and increases. On Oct. 25, the contact letter for BYD’s battery price was released to the market, BYD said that the tax included price for battery products would be increased no less than 20%, and that the new price would be implemented for all new orders from Nov. 1. The market is expected to implement new prices next year.

SmartPropel also face the cost pressure by the lithium battery raw material and electricity shortage. Vincent Yang, president of SmartPropel, told the China Times: “The price of lithium batteries is likely to rise in the next two years. The new energy vehicle race track development tendency already appears, the future will be each country to the industrial competition strategy commanding high point contention. Lithium battery is the best form of electrochemical energy storage product, there is no substitute for it until now. Lithium mineral lithium salt resource shortage phenomenon has been expected, lithium carbonate products in short supply, capacity constraints, downstream demand pattern can not be changed temporarily. Multiple factors add up to support a better lithium-ion industry. As for the upside, it depends on the end-user and total user acceptance.”

Supply and demand is stress, high-quality resources are scarce, the global competition for lithium resources has entered the hot stage.
The most hot model on the market 72V 30Ah, 72V 45Ah, 72V 60Ah, 72V 100Ah, 72V 150Ah, 72V 200Ah and 12V 100Ah, 12V 200Ah lithium battery is the short supply. Under the whole market, next year or even after, market prices will continue to rise.In order to reduce the pressure, the vehicle factory can layout in advance, storage batteries in advance, otherwise, will face high cost increases and production capacity constraints.