Analysis of Battery Price Surges and Their Impact on Related Industries

In the current economic climate, the surge in battery prices has garnered widespread attention. This phenomenon is not accidental but the result of the convergence of multiple factors.

The Dynamics of Raw Material Cost Increases

The primary driver of rising battery prices is the escalating cost of upstream raw materials.

1. Lithium Hexafluorophosphate ($LiPF_6$) Price Spike

In the short term, the price of Lithium Hexafluorophosphate ($LiPF_6$), a key upstream material for lithium batteries, has seen an increase exceeding 20%.

• Rapid Jump: In just three days after the holiday (October 9th to 11th), the price of $LiPF_6$ experienced a dramatic, stepwise increase, jumping from an opening quote of ¥61,000/ton to a maximum of ¥75,000/ton for some spot orders, representing a maximum surge of 22.95%.

• Historical Context: While the current price is significant, it pales in comparison to the previous peak. In the last upward cycle, $LiPF_6$ prices soared to ¥600,000/ton by March 2022.

• Market Analysis: Current market analysis suggests that robust demand in November, coupled with most manufacturers operating at full capacity, means supply growth is marginal. The persistent supply gap for $LiPF_6$ is expected to continue driving prices up.

2. Titanium Dioxide Price Hike

Another upstream material, Titanium Dioxide ($TiO_2$), has also seen price increases announced by producers.

• Corporate Announcements: Companies like Lomon Billions announced a price increase effective October 10th: ¥300/ton in the domestic market and $40/ton in the international market.

• Industry Trend: Nearly 20 domestic $TiO_2$ companies, including Jinmao Titanium, Shandong Dongjia, and Panzhihua Xingzhong Titanium, have collectively raised prices, with domestic increases around ¥300-¥500/ton and overseas increases of $30-$70/ton.

• Cost Transmission: The rising cost of $TiO_2$ is understood to directly impact the production cost of Lithium Iron Phosphate (LFP), a crucial cathode material for the lithium-ion battery industry, by pushing up the cost of its by-product, ferrous sulfate.

Other Contributing Factors

Beyond raw materials, other forces are at play:

• Technological Advancement: Increased R&D investment to enhance battery performance and safety (e.g., developing new battery technologies) ultimately translates into higher product costs.

• Market Supply-Demand Imbalance: The rapid expansion of sectors like New Energy Vehicles (NEVs) and consumer electronics has caused a sustained surge in battery demand that short-term supply cannot meet, leading to price inflation.

📈 Impact on Related Industries

The rising cost of batteries has had a multifaceted impact across various sectors.

Summary of Sectoral Challenges and Opportunities

The cost increase puts pressure on NEV manufacturers, potentially leading to higher vehicle prices and impacting consumer purchasing decisions. However, it also acts as a catalyst, encouraging companies to accelerate technological innovation to reduce battery costs and improve vehicle energy efficiency.

In the electronic device sector, manufacturers may adjust product strategies, perhaps reducing production of high-energy-consuming items or increasing investment in energy-saving technologies.

For the energy storage sector, while rising costs may initially slow down deployment, it will ultimately drive the industry to prioritize higher system efficiency and stability.

In conclusion, the battery price surge is a result of combined factors, presenting both challenges and opportunities for related industries. These sectors must respond proactively by leveraging technological innovation and optimizing supply chains to mitigate costs and enhance competitiveness.

📦 Manufacturer's Note: Shenzhen ESC (Fast Charging Power Bank Factory)

Shenzhen ESC, a factory specializing in Fast Charging Power Banks, utilizesPolymer Lithium Batteries and Cylindrical Lithium-ion Batteries. Despite the sharp increase in upstream raw material costs, the company is committed to maintaining stable pricing by sacrificing margin to gain market share.

Official Announcement: ESC has decided to keep all power bank prices unchanged until the end of December 2025. If you have any new power bank procurement needs, please contact us immediately to secure the most cost-effective products before the announced price adjustment.