Several Chinese suppliers of lithium battery materials have announced price increases across key product lines, citing rising upstream raw material costs and growing global demand driven by the energy transition. These adjustments, scheduled to take effect later this year and early next year, may contribute to higher prices for new energy vehicles in 2026.
Hunan Yuneng New Energy, a major provider of lithium iron phosphate cathode materials to leading battery manufacturers, said it will raise its processing fee by 3,000 yuan per ton (approximately $425) from January 1, 2026, excluding taxes. The company also noted that further market volatility or significant shifts in raw material costs could trigger additional price negotiations.
Similarly, Dejia Energy announced a 15% increase in its battery product prices, effective December 16, 2025, attributing the change to substantial increases in raw material expenses. These supplier adjustments follow sharp rises in the prices of critical electrolyte and cathode ingredients. Data from industry sources show that lithium hexafluorophosphate, the primary conducting salt in liquid electrolytes, climbed from around 55,000 yuan per ton ($7,800) to about 120,000 yuan per ton ($17,000) over two months, an increase of more than 118%.
Lithium cobalt oxide, used in many cathode formulations, has surged from roughly 140,000 yuan per ton ($19,850) at the start of the year to approximately 350,000 yuan per ton ($49,600) in November, up over 150%. Battery-grade lithium carbonate prices have also exceeded 94,000 yuan per ton ($13,300), with a single-month gain of 16% in November. Industry estimates suggest that every 10,000 yuan per ton increase in lithium carbonate adds about 2,300 to 2,500 yuan per ton to the cost of lithium iron phosphate cathode material.
Lithium iron phosphate batteries currently represent 81.5% of installed power battery capacity in China. The ongoing tight supply-demand balance has prompted automakers to secure contracts with leading cell producers to mitigate potential disruptions to vehicle production schedules. As market dynamics evolve, industry stakeholders continue to monitor raw material trends closely.
Source: CarNewsChina
