The battery division of China’s leading lithium producer Ganfeng Lithium Co. has announced price increases for small consumer electronics batteries. The company’s products are used by many well-known smartphone manufacturers such as Xiaomi and Oppo.
According to Bloomberg, China’s Xinyu Ganfeng Electronics Co. has sent out a notice to its customers warning of an increase in battery sales prices due to significant cost increases. When asked by journalists, the Chinese manufacturer confirmed the information provided in the letter, although the company did not report how much the prices had risen.
Xinyu Ganfeng Electronics Co., which makes small lithium-polymer batteries for small portable devices and Bluetooth headsets, has seen “huge price increases” for minerals including lithium carbonate, cobalt oxide and graphite. In addition, the price of anode materials was impacted by constraints related to manufacturing processes and power supply in China’s Inner Mongolia region.
The demand for metals for batteries began to grow rapidly after they began to be actively used not only in consumer electronics, but also in electric vehicles, where much more of them are used, and the general transition to “green” technologies only accelerates this process. In addition, supply is impacted by logistical issues related to COVID and limited investment in the industry in previous years.
According to Bloomberg, the price increase is “annoying” some manufacturers, as higher costs have a negative impact on the goods margin and threaten the supply of raw materials. Lithium prices recently reached an inflection point, but their incremental month-on-month gains remain in place as global supply chains “remain under pressure,” according to BloombergNEF.