Lithium-ion battery prices have gone crazy! Or it may last until 2023!

In the second half of 2021, with the major lithium ion battery manufacturers letters of price adjustment, the lithium ion battery price increase kicked off. Especially after the Chinese New Year, lithium ion battery prices have increased by almost 20%. And it keeps changing every day. Not only have prices risen, but the supply of goods is also very tight. When you go to manufacturers to pick up products, you usually need to make full payment in advance. and the delivery date cannot be guaranteed.

What exactly is causing lithium ion battery prices to go crazy? In addition to the epidemic and inflation, etc. Supply and demand and the rise in raw materials have become the main reason for the price increase of lithium ion batteries.

1. Supply and demand.

As we all know, carbon emissions contribute to the greenhouse effect and are considered to be one of the main causes of global warming. For the sake of global ecological protection and sustainable human economic and social development. Various countries have reached a consensus on reducing carbon emissions and optimising their energy mix, and have clearly set out specific milestones. In this situation, the demand for lithium ion batteries as one of the energy storage methods has increased greatly. Although the production of lithium ion batteries is also growing year by year, but still can not meet the hot market demand. The shortage of supply is driving the price of lithium ion batteries.

2. Raw materials are soaring.

Lithium carbonate is one of the raw materials for lithium ion batteries. It was priced at $420 per ton in January 2021 and has risen to $1,900 per ton by December 2021. Nearly 4 times increase. In addition, cobalt, nickel and other raw materials for lithium ion batteries are also on the rise. The rise in raw materials has eroded the costs that battery manufacturers have worked hard to reduce through their technological capabilities. Although the battery manufacturer through the signing of long orders, joint ventures to build factories and other ways to optimize the supply chain, stable product prices, and ultimately had to use the battery price increase to the downstream to conduct part of the pressure. The first-tier manufacturers who originally insisted on no price adjustment for the 2022 Li-ion battery contract price have also started to notify their customers who have signed the contract to renegotiate the price.

Since 2022, lithium ion battery related raw materials still continue to rise wildly, some have reached a daily increase of CNY 10,000 RMB per ton, simply can not stop. Some battery factory sources revealed that the raw material suppliers’ quotations keep rising, and need pay full price in advance. Despite this, the purchasing staff sometimes could not get the goods at all.

Raw material price increases continue. Compared with the raw material factory and the battery factory capacity launch rate, the last two years there is still a large gap between supply and demand, price increases may continue to 2023.

Luoyang Tianhuan energy technology Co., LTD

website:www.lythbattery.com

E-mail:info@lythbattery.com