Unable to withstand the continuous rise of upstream raw material prices, lithium battery companies have also begun to adjust prices

Unable to withstand the continuous rise in the prices of upstream raw materials, lithium battery companies have also begun to adjust their prices

According to a price increase notice disclosed by a battery company, the cost increase caused by the increase in raw material prices in the second half of 2020 has been borne by the company itself, but the continuous increase in material prices has exceeded the company's acceptable range, so the unit price of the product needs to be appropriately increased

Among them, the prices of the three major materials, lithium iron phosphate, copper foil, and electrolyte, have risen most significantly

Gaogong Li Battery was informed that this battery price adjustment is mainly for lithium iron phosphate batteries.

"Small customers have raised prices, and major customers are still negotiating

Previously, Gaogong Lithium has reported that due to the continuous heating up of the downstream new energy vehicle market, some upstream raw materials for power batteries have been in a state of tightening prices

Gaogong lithium battery continued to track that, as of January 25, as an important raw material for lithium iron phosphate, the domestic quotation of lithium carbonate is still in a state of upward adjustment

On the supply side, the current domestic lithium carbonate market spot inventory is still tight, the upstream quotation is firm and the willingness to sell is strong

On the demand side, the recovery in demand for new energy vehicles has led to an increase in the operating rate of cathode material companies, superimposed on the continued hot sales of Tesla Model 3 and Shangtong fifth-class lithium iron phosphate models, and the stocking cycle of the year before, the power battery companies’ orders are booming.

The analysis and judgment of the industry is that the gap in lithium carbonate production capacity will reach 5%-10% in 2021

In terms of copper foil, the current prices of 6μm copper foil and 8μm copper foil have risen to 105,000 yuan/ton and 89,000 yuan/ton respectively, compared with 90,500 yuan/ton and 70,500 yuan/ton in April last year.

Among them, copper prices and processing fees are the main reasons for the rise in copper foil prices

From the perspective of market trends, due to strong downstream demand, mainstream copper foil companies have full orders and short supply, and are expected to be tight or last for a long time, and there is a strong demand for further price increases in the short term

The electrolyte supply situation is even more severe.

It can be seen that the price increase of the upstream raw materials of power batteries has been further transmitted to battery companies and weakened their profits.