A unit of China’s top lithium producer Ganfeng Lithium Co. is raising prices for small batteries used in consumer electronics like headphones that are produced by companies including Xiaomi Corp. and Oppo.
(Bloomberg) — A unit of China’s top lithium producer Ganfeng Lithium Co. is raising prices for small batteries used in consumer electronics like headphones that are produced by companies including Xiaomi Corp. and Oppo.
Xinyu Ganfeng Electronics Co. sent a letter to customers on Friday saying prices for new orders would be evaluated amid a substantial hike in power cell costs. The Chinese lithium producer confirmed the content of the letter seen by Bloomberg News; it didn’t give a size of the price increases for its customers.
The company, which makes small polymer lithium batteries for smart wearable products and Bluetooth headset batteries, cited a “huge increase” in prices of minerals including lithium carbonate, cobalt oxide and graphite. Anode materials had also been impacted by production and electricity curbs in Inner Mongolia, it added.
See also: Lithium Roars Back to China Record as EV Boom Overwhelms Supply
Demand for battery metals has boomed as their use expands from consumer electronics to electric vehicles, just as the global transition away from fossil fuels gathers pace. Meanwhile, supply has been struggling to catch up amid Covid-related logistical woes and a lack of investment from previous years.
The elevated prices have been unnerving some manufacturers as inflated costs could add pressure to margins and feedstock security. Battery-makers and the automobile industry have been rushing to lock in supply of the raw materials.
Battery-metal prices hit an inflection point in August and are now returning to month-on-month increases, according to a BloombergNEF report Tuesday, adding that global supply chains remain under pressure.
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