Several Chinese lithium battery material suppliers have recently issued price increase notices due to rising upstream raw material costs and a surge in demand driven by the convergence of global energy transition. For consumers, this means that the price of new energy vehicles may also be higher in 2026.
Hunan Yuneng New Energy, a major Chinese supplier of lithium-ion battery cathode materials whose customers include CATL and BYD, announced that effective January 1, 2026, the processing fee for its entire range of lithium iron phosphate products will be increased by 3,000 yuan/ton (425 USD), excluding tax. And that if significant fluctuations occur in the market or raw material prices, product prices will be renegotiated.
Another lithium battery manufacturer, Dejia Energy, announced that starting December 16, 2025, the selling price of battery products will be increased by 15% based on the current catalog price due to the significant increase in the raw material cost.
The price of lithium hexafluorophosphate, a raw material used primarily as the conducting salt in liquid electrolytes for rechargeable lithium-ion batteries, surged from 55,000 yuan/ton (7,800 USD) to 120,000 yuan/ton (17,000 USD) in just two months, an increase of over 118%, according to tech-focused Chinese news outlet OFweek.
The price of lithium cobalt oxide, used as the cathode in rechargeable lithium-ion batteries, soared from 140,000 yuan/ton (198,50 USD) at the beginning of the year to 350,000 yuan/ton (49,600 USD) in November, an increase of over 150%.
The current price of battery-grade lithium carbonate has exceeded 94,000 yuan/ton (13,300 USD), with a single-month increase of over 16% in November. For every 10,000 yuan/ton (1,400 USD) increase in its price, the cost of lithium iron phosphate cathode material increases by approximately 2300 – 2500 yuan/ton (326 – 354 USD).
Currently, lithium iron phosphate batteries account for 81.5% of the installed capacity in the power battery market in China. According to public reports, due to the continued tight supply and demand for power batteries, some automakers are flocking to leading battery manufacturers to secure supplies to overcome battery supply bottlenecks and ensure minimal impact to their vehicle production schedules.
He Xiaopeng, chairman of Xpeng Motors, even publicly stated that he had “had drinks with all the battery manufacturers’ bosses.”
Source: OFweek, Hunan Yuneng New Energy, Dejia Energy, CATL
