According to Taiwan's Electronic Times, battery module plants have been informed that due to the increase in downstream demand for electric vehicles, energy storage and so on, early next year, the cylindrical lithium battery core will rise again, by 5% to 15%, battery prices may continue into 2023. Although the overall price of batteries has fallen this year, the actual price of batteries has been rising since the second half of the year.
Multiple factors support the price of lithium batteries
Since the beginning of this year, the new energy vehicle market has continued to grow, on the demand side of lithium battery prices formed an important support. According to the latest sales statistics of the Automotive Market Research Branch of the China Automobile Circulation Association, retail sales of new energy passenger cars reached 321,000 units in October, up 141.1% YoY and down 3.9% YoY. From January to October, new energy vehicles retailed 2.139 million units, increase 191.9%. The increase in the price of upstream raw materials also affects the price of batteries.
As of mid-November, the price of lithium carbonate was 19.5 yuan per ton, increased more than 230% from the beginning of the year. Yellow phosphorus and phosphoric acid, which are necessary for the production of lithium iron phosphate batteries, increased by up to 280% during the year. The prices of scarce precious metals such as nickel, cobalt and manganese have also risen, showing a situation of oversupply.
Huge demand for lithium batteries has also driven the expansion of production across the battery industry.
For above so many reasons, decreasing cost of electric vehicles would be delayed.