PaulRainbow
Well-Known Member
Just received the following:
We want to keep you informed about some important changes happening across the lithium market, and what this means for pricing in the coming months.
Over the past few years, lithium prices have been falling steadily. This helped stabilise battery costs and, in many cases, allowed prices to improve. Wherever possible, we always passed those reductions on to you.
However, this trend is now reversing.
Lithium costs are rising again, and at the same time, changes in Chinese export policy are reducing the rebates manufacturers previously received. These rebates had helped support lower export pricing, so their reduction is now increasing overall costs.
At the same time, raw material costs are increasing. When these two factors combine, there is very little room for manufacturers to absorb the difference. As a result, we are now seeing higher cell pricing coming through from suppliers, which will begin to impact finished products.
Shipping and logistics are also becoming less predictable too. While not the primary driver, fluctuations in freight costs are adding significant pressure to overall pricing.
We want to keep you informed about some important changes happening across the lithium market, and what this means for pricing in the coming months.
Over the past few years, lithium prices have been falling steadily. This helped stabilise battery costs and, in many cases, allowed prices to improve. Wherever possible, we always passed those reductions on to you.
However, this trend is now reversing.
Lithium costs are rising again, and at the same time, changes in Chinese export policy are reducing the rebates manufacturers previously received. These rebates had helped support lower export pricing, so their reduction is now increasing overall costs.
At the same time, raw material costs are increasing. When these two factors combine, there is very little room for manufacturers to absorb the difference. As a result, we are now seeing higher cell pricing coming through from suppliers, which will begin to impact finished products.
Shipping and logistics are also becoming less predictable too. While not the primary driver, fluctuations in freight costs are adding significant pressure to overall pricing.
