Power battery and metal raw material prices rose dramatically since last year, the price of NEV’s raw materials hit a new record high On March 7.
Why do prices increase?
Among all, the price of battery-grade lithium carbonate, which is the main raw material for new energy vehicle batteries, has increased 10-fold in just over a year.
Research reported that the rapid rise in the price of lithium carbonate is mainly due to its urgent demand by manufacturers such as BYD, as they are actively building overseas energy storage batteries.
On the other hand, the supply of lithium resources cannot be improved within such a short time. The contradiction between supply and demand may exist for a long time.
The average price of battery-grade lithium carbonate reached 5,025 thousand RMB/ton; LME nickel rose more than 70% in a single day, once exceeding $55,000 / ton; LME aluminium hit a record high of $4,020 a tonne.
The influence of price increase
At least 16 NEV car companies have announced price adjustments since the end of last year, the models adjusted covered the mainstream car purchase range from less than 100,000 RMB to more than 300,000 RMB.
In addition to lithium carbonate, neon, palladium, nickel, aluminum, and other important raw materials in the automotive industry chain were affected by the conflict between Russia and Ukraine and showed great fluctuations.
Analysis believes that geopolitical conflicts lead to blocked resource circulation, causing market concerns, global supply, or shortfall expectations.
Some of the car companies that have made this suggestion include XPeng and NIO.
There even exists rumors that CATL is going to decrease their march production plan. However, this is not admitted by CATL.
On the positive side, professionals have suggested that the increase of cost of production will not be influencing much of the domestic NEV market.